S&P 500 Stops Record-Breaking Run as Bonds Decline – US Market Wrap
Stocks slid from record highs as Trump escalated his trade onslaught, driving the dollar higher. Concerns about the potential inflationary effects of tariff increases impacted on the Treasury market. Oil prices rose as traders braced for new US moves to curb Russian energy shipments.
After a run that propelled the S&P 500 to its fifth record in nine trading days, market bulls took a break. While over 400 shares in the benchmark fell, rises in most major technology companies lifted the market away from session lows. Kraft Heinz surged on press reports that the business is preparing to split apart. The six largest US banks are due to report earnings next week, with experts forecasting an increase in trading revenue.
Trump threatened a 35% duty on select Canadian exports and suggested raising tariffs on most other countries, ratcheting up his trade rhetoric. The US president told NBC News that he is also considering imposing 15% to 20% tariffs on most trading partners. The current worldwide baseline minimum tariff rate for almost all US trading partners is 10%.
Longer-dated Treasuries led drops on Friday, as the bond market suffered a second week of losses. The greenback had its finest week since February. Bitcoin surpassed $118,000 for the first time.
