Stocks fell on Friday, reversing Thursday's record highs for the S&P 500. The Dow dropped 279.13 points (0.63%), the S&P 500 fell 0.33%, and the Nasdaq lost 0.22%. This decline followed President Trump's announcement of a 35% tariff on Canadian goods and threats of broader tariff increases, escalating trade war concerns. While investors initially shrugged off trade tensions, the unexpected Canada tariff prompted Friday's market downturn, leaving major averages in negative territory for the week. Next week brings the start of second-quarter earnings reports and key inflation data.

Prepared by Christopher Adams and reviewed by editorial team.