Major Indexes Pull Back Amid Escalating Trade Tensions
Major U.S. stock indexes are trading lower on Friday, July 11, 2025, as investors digest the latest round of tariff announcements and prepare for the upcoming earnings season. The S&P 500 is down 0.65% in premarket trading, while the Nasdaq Composite has fallen 0.58% and the Dow Jones Industrial Average has dropped 0.70%.
This pullback comes after Thursday’s session where markets had largely shrugged off President Trump’s earlier tariff announcements, with the S&P 500 and Dow posting gains of 0.3% and 0.6% respectively.
Premarket Movers: Crypto and Tech Stocks Lead Gainers
Several stocks are showing significant movement in premarket trading. Among the top gainers, Future FinTech Group (FTFT) is surging 121.19%, while Above Food Ingredients (ABVE) has doubled in value, up 102.58%.
Cryptocurrency-related stocks are showing strength in early trading, with BTC Digital (BTCT) up 21.87%, Argo Blockchain (ARBK) gaining 20.94%, and BTCS Inc. (BTCS) adding 18.65%.
On the downside, Concorde International Group (CIGL) is the biggest premarket loser, dropping 29.86%, followed by Q32 Bio (QTTB) falling 25.00% and Pop Culture Group (CPOP) declining 22.17%.
Trade Tensions Escalate as New Tariffs Loom
Markets are reacting to President Trump’s expanding tariff agenda, which now includes a 50% tariff on imported copper set to take effect August 1, as well as a 50% tariff on Brazil.
Brazilian President Luiz Inacio Lula da Silva has indicated that Brazil will respond to the 50% tariff in accordance with its economic reciprocity law, raising concerns about an escalating trade war.
Trump has also sent letters to leaders of at least seven additional countries outlining new U.S. import rates, adding to the 14 countries that received similar notices earlier this week. These duties are scheduled to take effect on August 1, creating uncertainty for global markets and supply chains.
Earnings Season Kicks Off Next Week
Investors are turning their attention to the upcoming earnings season, which begins in earnest next week with major financial institutions leading the way. JPMorgan Chase (JPM), Bank of America (BAC), and Goldman Sachs (GS) are among the banking giants scheduled to report.
Analysts have tempered their expectations for the second quarter, with S&P 500 companies now projected to show profit growth of 5.8% year-over-year, down from earlier forecasts of 10.2% growth.
“Investors are looking toward the end of the year into next year where fundamentals are better, and they are willing to look through some short-term uncertainty as they get there,” said Chris Fasciano, chief market strategist at Commonwealth Financial Network.
Economic Data on Tap: Inflation and Retail Sales
Next week brings several key economic reports that could influence market direction. The Consumer Price Index (CPI) for June, scheduled for release on Tuesday, will provide crucial insights into inflation trends amid concerns about the impact of tariffs on consumer prices. Economists expect a 0.3% monthly increase, accelerating from the previous month.
Thursday’s retail sales report will offer a window into consumer spending patterns, which remain a critical driver of economic growth. These data points will be closely watched by Federal Reserve officials as they consider the timing of potential interest rate cuts.
While a July rate cut is off the table, market participants now see a 64% probability of a September reduction, according to CME Group’s FedWatch tool.
Transportation Stocks Showed Strength Thursday
One bright spot in Thursday’s market was the transportation sector, particularly airline stocks. Delta Air Lines (DAL) jumped 12.5% after forecasting third-quarter and full-year profits above Wall Street estimates.
“Reflecting our confidence in the business, we are restoring financial guidance,” said Delta CEO Ed Bastian. The company now expects full-year EPS of $5.25 to $6.25 per share and free cash flow of $3 billion to $4 billion.
Other airlines benefited from Delta’s positive outlook, with United Airlines (UAL) rising 13.4% and American Airlines (AAL) gaining 12.5%.
Market Outlook: Navigating Uncertainty
As markets navigate the complex landscape of trade tensions, earnings expectations, and monetary policy considerations, investors appear to be taking a cautious approach. The S&P 500 has surged 26% since April to reach all-time highs, but the rally is now being tested by these emerging challenges.
“The market’s been extremely desensitized to all of this back and forth, and I think for good reason,” said Mike Dickson, head of research and quantitative strategies at Horizon Investment, referring to the market’s resilience in the face of tariff announcements.
As earnings season gets underway, market participants will be particularly focused on how company executives address the uncertainty surrounding trade policies and whether they are able to make forecasts and decisions about capital investment and hiring despite the shifting trade backdrop.
With major market indexes pulling back from recent highs and the Russell 2000 showing particular weakness, today’s session may set the tone for how markets respond to the dual challenges of trade tensions and potentially slowing earnings growth in the weeks ahead.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.