S&P Backs off from Record as Trump Terminates Canada Trade Talks

The S&P 500's rally to record highs evaporated Friday after new comments from President Donald Trump tied to U.S.-Canada tariffs hurt improving sentiment around global trade tensions.The Dow Jones Industrials popped 432.43 points, or 1%, to 43,819.27.The much-broader index advanced 32.05 points to end the day and the week at 6,173.07, a figure which surpassed the prior all-time high of 6,147.43 from Feb. 19.The NASDAQ Composite tacked on 105.54 points to 20,273.46, also a new record high.The S&P 500 is up more than 20% since reaching a nadir on April 8 and now up nearly 5% for the year. Stocks cooled off from their session highs after Trump said on Truth Social that trade talks between the U.S. and Canada were being terminated. Investors initially bid up equities after Commerce Secretary Howard Lutnick told Bloomberg News late Thursday that a framework between China and the U.S. on trade had been finalized. Lutnick added that the Trump administration expects to reach deals with 10 major trading partners imminently.Friday’s reversal marks the latest episode in which Wall Street tries to navigate an ever-changing global trade landscape.After rising to a new high in February on hopes for business-friendly policies from Trump, stocks tumbled as the president decided to instead implement stiff tariffs first. At its low in April, the S&P 500 was down nearly 18% for 2025. The benchmark then began a stunning comeback after Trump walked back his stiffest tariff rates and the U.S. began negotiations for trade deals.Along the way, investors kept buying despite a spike in oil prices spurred by the Israel-Iran conflict and a yield surge on deficit worries. A recovery in the artificial intelligence trade led by Nvidia and Microsoft helped fuel the comeback.The S&P 500 is up more than 20% since reaching a nadir on April 8 and now up more than 4% for the year. Along the way, investors kept buying despite a spike in oil prices spurred by the Israel-Iran conflict and a yield surge on deficit worries. A recovery in the artificial intelligence trade led by Nvidia and Microsoft helped fuel the comeback.Nvidia hit an all-time high again on Friday, up 0.9%. Microsoft notched a new record as well before hovering around the little-changed mark.Prices for the 10-year treasury dropped slightly, raising yields to 4.27% from Thursday’s 4.24%. Treasury prices and yields move in opposite directions. Oil prices inched lower 10 cents to $65.14 U.S. a barrel. Gold prices sank $64.20 to $3,283.80 U.S. an ounce.