{"id":20926,"date":"2025-07-11T03:53:04","date_gmt":"2025-07-11T03:53:04","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20926"},"modified":"2025-07-11T03:53:04","modified_gmt":"2025-07-11T03:53:04","slug":"sp-500-dips-as-trump-escalates-trade-tensions","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/sp-500-dips-as-trump-escalates-trade-tensions\/","title":{"rendered":"S&P 500 Dips As Trump Escalates Trade Tensions"},"content":{"rendered":"\n

US equities pulled back on Friday after President Donald Trump broadened his trade offensive, this time targeting Canada and the European Union. The S&P 500 slipped to 6,258.80 by the close, reversing sharply from its intraday peak of 6,296.05, a drop of 0.39%, as market sentiment turned during the early US session.<\/p>\n\n\n\n

The downturn mirrored movements in Nasdaq and EUROSTOXX 50 futures, which fell by 0.4% and 0.6%, respectively. Trump unveiled a 35% tariff on all Canadian imports,<\/a> effective 1 August, and floated a sweeping 15\u201320% duty on other trading partners. Reports suggest a formal notice to the EU may be imminent.<\/p>\n\n\n\n

Stronger Dollar As Risk Appetite Dims<\/h2>\n\n\n\n

Currency markets also echoed the shift in sentiment. The euro fell 0.3% to $1.1668, while the US dollar gained 0.4% against the Canadian dollar, rising to C$1.3704. Despite the bold announcement, the reaction was relatively measured as investors assessed whether the 1 August tariff implementation date would be enforced.<\/p>\n\n\n\n

Trump had previously issued a short delay earlier in the week. However, analysts, including Joseph Capurso from CBA, remain sceptical that further trade deals can be finalised in time.<\/a> If not, a substantial tariff hike looms next month, unless another postponement is quietly introduced.<\/p>\n\n\n\n

Technical Analysis<\/h2>\n\n\n\n

The SP500 is retreating after printing a local high at 6296.05, with the index closing at 6258.80, down 0.39% intraday. This sharp drop comes after a steady grind higher throughout the 10th of July, but a late-session selloff triggered a clean break below short-term support near 6270, dragging prices toward the 6250 zone.<\/p>\n\n\n

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SP500 drops below 6270 ahead of CPI. Momentum weakens as bears take short-term control, as seen on the\u00a0VT Markets app.<\/figcaption><\/figure><\/div>\n\n\n

The 5- and 10-period moving averages have sharply turned lower, while the 30-period MA is flattening\u2014signalling a potential reversal or deeper pullback if support breaks. The MACD shows strong bearish divergence, with a steep drop in histogram bars and a cross below the signal line. Momentum is clearly fading after the recent rally.<\/p>\n\n\n\n

Earnings Season Looms: Will It Reinforce The Rally?<\/h2>\n\n\n\n

Despite ongoing policy concerns, Wall Street had recently pushed to new records, with Nvidia\u2019s valuation surpassing $4 trillion. Now, however, attention is shifting to second-quarter earnings, beginning with JPMorgan Chase on Tuesday.<\/p>\n\n\n\n

Traders will be closely watching whether companies have absorbed or passed on rising input costs linked to the ongoing trade disputes, which began in earnest back on 2 April. This earnings cycle could either validate recent market highs or trigger a correction if forward guidance proves underwhelming.<\/p>\n\n\n\n

Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now.<\/strong><\/p>\n\n\n\n


<\/p>\n","protected":false},"excerpt":{"rendered":"

US equities pulled back on Friday after President Donald Trump broadened his trade offensive, this time targeting Canada and the European Union. The S&P 500 slipped to 6,258.80 by the close, reversing sharply from its intraday peak of 6,296.05, a drop of 0.39%, as market sentiment turned during the early US session. The downturn mirrored Continue Reading<\/a><\/p>\n","protected":false},"author":92,"featured_media":20930,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-20926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=20926"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20930"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=20926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=20926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=20926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}