On July 11, 2025, US stocks retreated following President Trump's announcement of a 35% tariff on Canadian imports, effective August 1. Consequently, the S&P 500 (^GSPC) fell by 0.3%, the Nasdaq Composite (^IXIC) dipped 0.2%, and the Dow Jones Industrial Average (^DJI) declined approximately 0.6%, losing over 250 points.
Despite the overall decline, some sectors showed resilience. AI chip maker Nvidia (NVDA) achieved a new record high, while Bitcoin (BTC-USD) surged above $118,000, reflecting a strong crypto rally.
Late Thursday, Trump posted a letter directed at Canadian Prime Minister Mark Carney, outlining the forthcoming tariff policy. The administration later stated that certain exemptions for Canada would remain intact, likely protecting several goods from the new duties. This move adds to a series of renewed threats aimed at trading partners, including proposals for 15% to 20% blanket tariffs applicable to various nations.
Amid these developments, JPMorgan CEO Jamie Dimon expressed concern that the markets may be too complacent regarding Trump's tariff threats, urging a reassessment of the situation.
Nvidia has recently seen remarkable growth, closing at a valuation of $4 trillion, making it the first company to reach this milestone. The tech giant's dominance in the AI chip market has led to earnings surging, with the stock up approximately 23% year-to-date.
Bitcoin's significant uptrend continued, temporarily surpassing $118,000 before retracing slightly. This surge is connected to broader investor optimism in tech markets, supported by Trump’s recent endorsement of the creation of a strategic bitcoin reserve. Bitcoin has risen over 25% since the year's beginning, further linking its performance to advancements in the tech sector.
Precious metals reacted strongly to the tariff news. Silver (SI=F) futures surged over 3% to reach the highest levels since 2011, peaking at $39 per ounce. Similarly, gold (GC=F) also saw gains as investors sought safe havens amid trade uncertainties.
The energy sector (XLE) was notably the only sector to post gains as oil prices rose amid concerns over supply tightness. Brent crude futures increased 1.5%, trading near $70 per barrel, while West Texas Intermediate futures climbed 1.6% to approximately $67 per barrel. This price movement reflects the market's reaction to Trump's tariff announcement and potential geopolitical risks.
AMC Entertainment Holdings (AMC) saw a robust jump of 9.5% in early trading after an upgrade from Wedbush, anticipating positive financial outcomes for the chain. Meanwhile, other retail stocks such as Levi’s (LEVI) also rose after announcing higher revenue forecasts.
In conclusion, July 11, 2025, proved to be a day of mixed signals in the US stock market amid growing trade tensions, remarkable performances from technology and cryptocurrency, and cautious investor sentiment.