US stock markets ended lower as renewed concerns over trade tensions triggered a cautious pullback from record highs. The S&P 500 slipped around 0.3%, while the Nasdaq Composite edged down by 0.2%. The Dow Jones Industrial Average also declined by 0.6%, marking a broad retreat across indices after recent bullish momentum.
The dip followed rising fears of fresh tariff actions, with markets reacting to reports of steep duties on Canadian imports and the possibility of broader trade restrictions affecting multiple sectors, including pharmaceuticals and metals. These moves reignited worries about global trade friction at a time when investor focus had begun shifting to corporate earnings and economic data.
Adding to the pressure, bond yields climbed as 10-year Treasury notes saw renewed selling. Rising yields can hurt equities, especially tech stocks, which had been instrumental in driving major indices to all-time highs. Analysts pointed out that while markets had grown somewhat immune to tariff headlines in recent years, the latest developments carried enough weight to rattle sentiment and trigger defensive positioning.
In corporate action, apparel company Levi Strauss saw its shares surge by 11% after posting better-than-expected earnings and raising forward guidance. PriceSmart also gained 5% on strong quarterly results and positive expansion outlooks. However, financial and healthcare sectors underperformed, with notable declines in names like Visa and Gilead Sciences. Airline stocks were also under pressure despite some firms reporting solid results.
Looking ahead, investor attention is now turning toward the upcoming earnings season, with major US banks like JPMorgan Chase, Wells Fargo, and Citigroup scheduled to release results this week. Their performance will be closely watched for insights into consumer demand, credit growth, and the broader economy.
While the pullback suggests short-term nervousness, some analysts remain cautiously optimistic. They believe any potential de-escalation in trade rhetoric or stronger-than-expected earnings could provide relief. Still, until more clarity emerges on tariffs and inflation trends, Wall Street may continue to see increased volatility in the near term.
