U.S. stocks close lower to end week

U.S. stocks ended lower on Friday, pulling back from record highs set a day earlier, after U.S. President Donald Trump announced a new 35 percent tariff on goods imported from Canada and warned of even broader tariff hikes.

The Dow Jones Industrial Average fell by 279.13 points, or 0.63 percent, to 44,371.51. The Standard and Poor's 500 sank 20.71 points, or 0.33 percent, to 6,259.75. The Nasdaq Composite Index shed 45.14 points, or 0.22 percent, to 20,585.53.

Nine of the 11 primary Standard and Poor's 500 sectors ended in red, with financials and health leading the laggards by losing 1.00 percent and 0.88 percent, respectively. Energy and consumer discretionary led the gainers by going up 0.48 percent and 0.33 percent, respectively.

Trump justified the higher duties on Canada by citing fentanyl concerns and warned the tariffs could go even higher if Canada retaliates.

In an interview with NBC News, the president said he is considering blanket tariffs of 15 percent to 20 percent on all remaining U.S. trading partners, which is significantly above the 10 percent level investors had largely come to expect.

Markets are also watching for further trade developments, particularly with the European Union. While traders anticipate an update from Trump on EU negotiations, it is unclear whether he will impose new tariffs, as he did with Canada, or simply signal progress in ongoing deal talks.

The tech sector, which has helped propel the market to recent highs, was mixed on Friday.

Nvidia shares rose 0.5 percent, extending gains after the artificial intelligence chipmaker became the first company ever to close with a market cap above 4 trillion U.S. dollars.

Amazon added more than 1 percent as its Prime Day sales event wrapped up, while Tesla and Alphabet also climbed more than 1 percent.

Microsoft ticked higher, while Apple and Broadcom edged lower.

Meta Platforms fell 1.34 percent on Friday, one day after reports surfaced that the company had offered a compensation package exceeding 200 million dollars in an attempt to lure away Apple's top executive overseeing artificial intelligence models.

Bond markets reacted to the tariff developments as well, with the yield on the 10-year Treasury note rising to 4.42 percent from 4.35 percent at Thursday's close, reflecting increased uncertainty about inflation and interest rate policy.

Looking ahead, investors will turn their attention to next week's start of the second-quarter earnings season and key inflation data releases, both of which could shape the Federal Reserve's next moves.

U.S. stocks close lower to end week

South Korean President Lee Jae Myung said on Wednesday that Seoul firmly adheres to the one-China principle, in comments made ahead of his upcoming state visit to China.

The remarks were made in an interview with China Media Group (CMG). The visit is scheduled for Jan 4–7.

"The consensus reached between governments of the Republic of Korea and China when diplomatic relations were established continues to be the fundamental principle governing our relations, and its effectiveness remains steadfast. I want to clearly state that the ROK has always adhered to the one-China principle. Maintaining peace and stability in regional matters, including in Northeast Asia and concerning the Taiwan issue, holds significant importance to us," said Lee.

"The foundational relationship between the ROK and China was established on a very principled and fundamental basis from the beginning. It is clear that the ROK government has always adhered to this position and has never wavered from it. I believe that the sound development of ROK-China relations depends on both sides fully respecting each other's core interests and being mutually tolerant of each other's positions. In this context, we will, as always, uphold the one-China principle as the Taiwan issue is China's most fundamental concern," he said.

ROK president reiterates firm adherence to one-China principle