US Stock Futures Mixed After Trump Proposes 35% Canada Tariff, But Strategist Says ‘Extremely Bullish’ On Market Outlook

FactSet said in a report released last week that the year-over-year earnings growth of S&P 500 companies would be 5%, marking the smallest increase since the fourth quarter of 2023.
Traders work on the floor of the New York Stock Exchange (NYSE) on May 19, 2025 in New York City. Stocks were down sharply as traders react to Moody's downgrading the United States' credit rating.
Traders work on the floor of the New York Stock Exchange (NYSE) on May 19, 2025 in New York City. Stocks were down sharply as traders react to Moody's downgrading the United States' credit rating. (Photo by Spencer Platt/Getty Images)
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Shanthi M·Stocktwits
Published Jul 11, 2025 | 2:07 AM GMT-04
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U.S. stocks could finish the week on a high, reflecting the market's resilience despite the persistent tariff threat. President Donald Trump fired another salvo late Thursday, flagging a 35% tariff on imports from Canada through a letter.

Traders may remain cautious ahead of the start of the second-quarter reporting season that kicks off next week. FactSet said in a report released last week that the year-over-year (YoY) earnings growth of S&P 500 companies would be 5%, marking the smallest increase since the fourth quarter of 2023.

As of 1:05 a.m. ET on Friday, the S&P 500 futures rose over 0.20%, while the Nasdaq 100 futures slipped 0.19%. The Dow and the Russell 2000 futures were up 0.33% and 0.49%, respectively.

On Thursday, stocks largely ignored the weakness seen early in the session and mainly moved above the unchanged line before closing in the green. The optimism was due to hopes of the removal of the tariff overhang, a report that showed a fall in weekly jobless claims, and a positive reaction to Delta Air Lines’ (DAL) earnings.

Most sectors, except for communication services and IT stocks, advanced for the day.

The S&P 500 Index scaled a new high, both on an intraday (6,290.22) and closing (6,280.46) basis, and the tech-focused Nasdaq Composite also clinched record intraday and closing highs.

The SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), an exchange-traded fund (ETFs) that tracks the S&P 500 Index, rose 0.28%, while the Nasdaq 100 index fell 0.14%. 

The SPDR Dow Jones Industrial Average ETF Trust (DIA) added 0.45% and the iShares Russell 2000 ETF (IWM) climbed 0.51%.

The Treasury is due to release its June monthly federal budget at 2 p.m. ET, with economists, on average, expecting a narrowing in the deficit to $20.5 billion from $66 billion.

Carson Group Chief Market Strategist Ryan Detrick sees double-digit gains for the S&P 500 Index this year, citing historical precedent. While noting that Thursday capped off one of the most significant three-month rallies in history, with over 25% gains, Detrick said this has happened only five other times.

The strategist said, “This is extremely bullish.”

On these occasions, the market rose by an average of 22% a year later and never fell below that level, he said.

Early Friday, crude oil futures rebounded from Thursday’s slide, gold futures traded past the $3,350 mark, and the 10-year U.S. Treasury note yield ticked up slightly. The dollar was firmer against most currencies.

The major Asian markets traded mostly higher, led by the Hong Kong market.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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