{"id":26221,"date":"2025-07-11T02:25:35","date_gmt":"2025-07-11T02:25:35","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=26221"},"modified":"2025-07-11T02:25:35","modified_gmt":"2025-07-11T02:25:35","slug":"sp500-slips-as-trump-expands-trade-war","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/sp500-slips-as-trump-expands-trade-war\/","title":{"rendered":"SP500 Slips as Trump Expands Trade War"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/indices10-1024x559.png\" alt=\"\" class=\"wp-image-16994\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>SP500 futures fall 0.4%, closing at 6258.80 after hitting a high of 6296.05<\/li>\n\n\n\n<li>Trump imposes 35% tariffs on Canadian imports and targets EU with trade letter<\/li>\n\n\n\n<li>Traders await Q2 earnings, led by JPMorgan\u2019s results on Tuesday<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>U.S. stock markets turned lower on Friday after President <strong>Donald Trump<\/strong> ramped up his global tariff campaign, this time aiming squarely at <strong>Canada<\/strong> and the <strong>European Union<\/strong>. The <strong>S&amp;P 500<\/strong> closed at <strong>6258.80<\/strong>, after hitting an intraday high of <strong>6296.05<\/strong>, retreating by <strong>0.39%<\/strong> as momentum sharply reversed during the U.S. morning hours<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">A noticeable shift has been reshaping US equities in the month of July: Some of the biggest laggards from the first half are now outperforming, while the year\u2019s early winners are falling out of favor <a href=\"https:\/\/t.co\/79nCmDGjJm\">https:\/\/t.co\/79nCmDGjJm<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1943365796945637813?ref_src=twsrc%5Etfw\">July 10, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The pullback came in sync with Nasdaq and EUROSTOXX 50 futures, which fell 0.4% and 0.6%, respectively. The president announced a <a href=\"https:\/\/t.co\/POZNYgJsuF\" target=\"_blank\" rel=\"noopener\" title=\"\">35% tariff on all Canadian imports<\/a>, effective August 1, and hinted at blanket 15\u201320% duties on \u201cother nations.\u201d A formal warning to the EU is reportedly imminent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Dollar Strengthens Amid Trade Fallout<\/h2>\n\n\n\n<p>Currency markets reflected the shift in risk sentiment. The euro slipped 0.3% to $1.1668, while the greenback climbed 0.4% to C$1.3704. The market reaction was swift but restrained, as traders weighed the credibility of the August 1 tariff deadline.<\/p>\n\n\n\n<p>While Trump initially granted a delay earlier in the week, analysts like <strong>Joseph Capurso<\/strong> from CBA expressed doubt that <a href=\"https:\/\/uk.finance.yahoo.com\/news\/trump-tariffs-live-updates-eu-prepares-countermeasures-markets-brace-for-turmoil-191201342.html\" target=\"_blank\" rel=\"noopener\" title=\"\">ten more trade agreements could be reached in time<\/a>. This raises the risk of sharp tariff hikes next month\u2014unless another extension is quietly rolled out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>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\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-9.jpg\" alt=\"\" class=\"wp-image-26222\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: SP500 drops below 6270 ahead of CPI. Momentum weakens as bears take short-term control, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>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<h2 class=\"wp-block-heading has-medium-font-size\">Earnings Season: Calm Before the Storm?<\/h2>\n\n\n\n<p>Despite the policy headwinds, Wall Street had previously reached new highs, led by <strong><a href=\"https:\/\/t.co\/kB4cg7wn0g\" target=\"_blank\" rel=\"noopener\" title=\"\">Nvidia\u2019s market cap topping $4 trillion<\/a><\/strong>. But now, focus shifts to <strong>Q2 earnings<\/strong>, with <strong>JPMorgan Chase<\/strong> kicking off the season on <strong>Tuesday<\/strong>.<\/p>\n\n\n\n<p>Traders will watch closely to see if firms have absorbed or passed on cost pressures stemming from Trump\u2019s trade war, which began in earnest on <strong>April 2<\/strong>. The reporting cycle could either reinforce the recent highs\u2014or act as the catalyst for a correction if forward guidance disappoints.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&amp;P 500 retreats as Trump rolls out fresh tariffs on Canada and Europe. With earnings season about to begin, traders brace for further volatility. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,69],"class_list":["post-26221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-sp500"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26221"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16994"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}