S&P 500 index opens down 0.4%, Nasdaq 100 index down 0.3%

S&P 500 index opens down 0.4%, Nasdaq 100 index down 0.3%

The U.S. stock market opened lower on Friday, with the S&P 500 index down 0.4% and the Nasdaq 100 index down 0.3%. These declines came despite the broader market's recent rally, which saw both indices close at record highs on Thursday [1].

The market's opening was influenced by President Donald Trump's latest tariff announcements. Trump threatened to impose a 35% tariff on Canadian imports effective Aug. 1, although an exemption for goods that comply with the U.S.-Mexico-Canada free-trade agreement (USMCA) is expected [2]. The tariff threat has done little to dampen the market's enthusiasm, with stocks continuing to rally to new highs in recent weeks.

The S&P 500 and the tech-heavy Nasdaq Composite both closed at record highs on Thursday, with the S&P 500 reaching 6,280.46 and the Nasdaq Composite notching its second straight all-time high. However, the opening on Friday was marked by a pullback, with the S&P 500 opening at 6,237.67 and the Nasdaq 100 opening at 16,196.07 [1].

Investors are also keeping an eye on the latest jobless claims data, which showed a decline of 5,000 to 227,000 for the week ending July 5. This data is seen as an indicator of the labor market's health and could influence the Federal Reserve's decision on interest rates [1].

Cryptocurrency companies are likely to be in focus on Friday, as Bitcoin, the largest crypto, rallied to a new high of more than $118,000 ahead of the potential passage of a bill on stablecoins in the House next week [2].

Asset managers significantly increased their positions in Nasdaq 100 futures last week, buying 1.1 standard deviations above average. This indicates a bullish sentiment among institutional investors [3].

The market's focus remains on potential trade pacts with bigger U.S. trading partners, such as the EU, India, and Canada. While Trump has said a pact with India is close, the odds have narrowed after he warned of an extra 10% tariff on BRICS members [1].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-sp-500-nasdaq-eke-out-fresh-records-nvidia-closes-at-4t-market-cap-200027558.html
[2] https://www.barrons.com/livecoverage/stock-market-news-today-071125?mod\u003dhp_LEDE_C_2
[3] https://www.investing.com/news/stock-market-news/asset-managers-boost-nasdaq-100-futures-cut-growth-etfs-93CH-4126667