S&P 500 and Nasdaq composite pull back from their all-time highs

A modest pullback for U.S. stocks Friday eased the market from all-time highs and left major stock indexes on Wall Street in the red for the week.

The S&P 500 closed 0.3% lower a day after setting a record high. The benchmark index's loss for the week followed two straight weekly gains.

The Dow Jones Industrial Average dropped 0.6%, and the Nasdaq composite gave up 0.2% after drifting between small gains and losses much of the day. The tech-heavy index was coming off its own all-time high on Thursday.

The selling capped an uneven week in the market as Wall Street kept an eye on the Trump administration's rollout of new tariff threats against trading partners like Canada and looked ahead to the upcoming corporate earnings reporting season.

President Donald Trump said in a letter Thursday that he will raise taxes on many imported goods from Canada to 35%, deepening the rift between the longtime North American allies. The letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25% tariff rates that Trump first imposed in March.

The move was the latest bid by the White House to use threats of higher tariffs on goods imported into the U.S. in hopes of securing new trade agreements with countries around the globe, even historically close trading partners like Canada.

The administration had initially set Wednesday as a deadline for countries to make deals with the U.S. or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has been been extended to Aug. 1.

Trump also floated this week that he would impose tariffs of as much as 200% on pharmaceutical drugs and place a 50% tariff on copper imports, matching the rates charged on steel and aluminum.

The initial rollout of Trump's tariff policies in the spring roiled financial markets. But Wall Street has been relatively stable in recent weeks, with stocks steadily rising to record levels That suggests the market has mostly adjusted to the unpredictability of Trump's rapidly shifting tariffs. Some market watchers, however, aren’t so sure.

The market's response to Trump's tariff escalation this week “has been surprisingly muted. Markets appear to believe that Trump will again back down,” Paul Ashworth, chief North America economist at Capital Economics, wrote Friday. “We are not so sure.”

Despite the uncertainty around tariffs, Wall Street has already come to accept a “base case” of 10% tariffs across the board, said Eric Teal, chief investment officer at Comerica Wealth Management.

“To the extent that this gets extended, I think the market has priced a lot of that in,” he said.

Trade policy aside, the market is now set to shift at least some of its focus on companies due to report quarterly earnings over the next few weeks.

On Friday, Levi Strauss jumped 11.3% after the jeans maker easily beat Wall Street’s sales and profit targets and raised its full-year forecast, despite expecting higher costs from tariffs.

PriceSmart climbed 5.3% a day after the warehouse club operator delivered solid third-quarter results and said it's looking into expanding into Chile.

Earnings season shifts into high gear next week with JPMorgan Chase, Wells Fargo and Citigroup among the big banks due to report their results on Tuesday.

Shares in financial and health care sector companies were the biggest weights on the market Friday.

Visa fell 2.2% and Gilead Sciences dropped 4.3%.

Several airline stocks lost ground a day after encouraging quarterly results from Delta Air Lines set off a rally in the sector. Delta slipped 0.2%, United fell 4.3% and American gave up 5.6%.

Elsewhere in the market, shares of T-Mobile closed 0.2% lower after the Justice Department announced Thursday that it would not prevent the company from closing on its proposed $4.4 billion acquisition of U.S. Cellular. That deal, announced more than a year ago, had come under antitrust scrutiny from the Justice Department under President Joe Biden’s administration.

U.S. Cellular shares rose 3.6%.

Shares in aviation company Red Cat Holdings jumped 26.4% after Defense Secretary Pete Hegseth issued orders aimed at ramping up production and deployment of drones.

All told, the S&P 500 fell 20.71 points to 6,259.75. The Dow dropped 279.13 points to 44,371.51, and the Nasdaq slipped 45.14 points to 20,585.53.

Bond yields rose. The yield on the 10-year Treasury rose to 4.42%, from 4.34% late Thursday.

European stock indexes closed broadly lower following a mostly lower finish in Asian markets.

Meanwhile, bitcoin climbed to another all-time high Friday, briefly eclipsing $118,000 before easing back to around $117,901, according to Coindesk.

Bitcoin's price jump came amid bullish momentum across risk assets and coincides with Nvidia’s surge to a $4 trillion valuation. It also comes days before the U.S. Congress’ Crypto Week on July 14, where lawmakers will debate a series of bills that could define the regulatory framework for the industry.

A reflection of a window shows the New York Stock Exchange on Monday, June 30, 2025, in New York. (AP Photo/Yuki Iwamura)

People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Friday, July 11, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of Tokyo Stock Exchange building Friday, July 11, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of Tokyo Stock Exchange building Friday, July 11, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Friday, July 11, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

LOS ANGELES (AP) — Giannis Antetokounmpo blocked a shot by LeBron James and stole the ball from him on consecutive possessions in the final minute, and the Milwaukee Bucks blew a fourth-quarter lead before rallying for a 105-101 victory over the Los Angeles Lakers on Friday night.

Kevin Porter Jr. scored 22 points, and he hit two free throws to break a tie after Antetokounmpo blocked a driving layup attempt by James with 39 seconds left.

Antetokounmpo then knocked the ball out of James' hands from behind with 2 seconds left, and Porter hit two more free throws to seal Milwaukee's fifth win in seven games — its first over a team with a winning record since Dec. 11. Antetokounmpo finished with 21 points in his lowest-scoring effort since returning from his right calf strain.

Luka Doncic had 24 points and nine assists on 8-of-25 shooting for the Lakers. He had his lowest-scoring performance since Christmas, and he fouled out on Porter's 3-point attempt with 16.2 seconds to play.

James had 26 points, 10 assists and nine rebounds, but Antetokoumpo got the best of the top scorer in NBA history at crunch time. Los Angeles has lost six of 10.

Milwaukee surged to a double-digit lead in the first half even with Antetokounmpo on a minutes restriction in his injury return. Doncic scored 12 points in the third quarter but also committed four fouls in the period, including his fifth of the game.

Los Angeles abruptly erased its deficit by going on a 17-4 run to open the fourth, with James putting the Lakers ahead when he stole the ball from Antetokounmpo for a layup with 6:02 left. Milwaukee missed nine of its first 12 shots in the period, but Porter's layup tied it with two minutes left.

Lakers starters Austin Reaves and Rui Hachimura remain sidelined by injury, but Hachimura (calf) might return early next week from his six-game absence, coach JJ Redick said.

Bucks: At Denver on Sunday.

Lakers: At Sacramento on Monday.

AP NBA: https://apnews.com/NBA

Los Angeles Lakers guard Marcus Smart, left, tries to shoot as Milwaukee Bucks guard Gary Trent Jr. defends during the first half of an NBA basketball game Friday, Jan. 9, 2026, in Los Angeles. (AP Photo/Mark J. Terrill)

Los Angeles Lakers guard Luka Doncic, left, and Milwaukee Bucks guard Kevin Porter Jr. go after a loose ball during the first half of an NBA basketball game Friday, Jan. 9, 2026, in Los Angeles. (AP Photo/Mark J. Terrill)