Stock futures dropped Friday, a day after the S&P 500 posted a new record high, after President Donald Trump announced a 35% tariff on Canada and threatened higher tariffs across the board. Dow Jones Industrial Average futures shed 285 points, or 0.6%. Futures tied to S&P 500 declined 0.6% after the benchmark posted an all-time intraday high and record close on Thursday. Nasdaq 100 futures slid 0.5%. The Nasdaq Composite also set a new record Thursday. Trump cited fentanyl as a reason for higher Canada duties, adding that they would go higher if the country retaliates. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said in a letter posted on Truth Social. Trump then told NBC News he was planning blanket tariffs of 15% to 20% on remaining countries, higher than the current 10% standard that investors had grown comfortable with. “I think the tariffs have been very well-received. The stock market hit a new high today,” Trump told NBC News on Thursday. Traders were also waiting on a trade update from Trump on the European Union this week, but it’s not clear whether the president will post a letter with a new rate like he did with Canada or simply give an update on progress of ongoing deal talks. The S&P gained 0.3% on Thursday to notch a new record, while the tech-focused Nasdaq finished higher by 0.1% as investors shrugged off any worries around the latest trade developments, including a 50% U.S. tariff on imported copper as well as a 50% tariff on Brazil unveiled this week. A jump in Nvidia on the back of AI hopes to a $4 trillion market valuation has helped drive the recent market gains. Nvidia was pulling back in premarket trading Friday, along with most other tech shares. It was a broad sell-off Friday with most stocks in the S&P 500 in the red so far in early trading. JPMorgan led banks lower Friday, down about 1% in premarket trading. The economy needs to continue to stay resilient for the rally to be sustainable, warned Drew Pettit, Citi’s U.S. equity strategy director. “Structurally, we’re not there yet. Fundamentally, I don’t think we’re there yet,” he told CNBC’s “Closing Bell Overtime” Thursday. “If you want these types of sectors to continue to outperform more than just a tactical trade, you’re going to need the macro data to hold in there and the Fed to cut rates. It’s not an either or, structurally, I think it’s both and we’re not quite there.” Friday’s losses will likely push the major averages into the red for the week. Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data. U.S. Treasury yields moved higher on Friday as President Donald Trump slapped 35% tariffs on Canada and investors digested a week of trade drama. The 10-year Treasury yield was up 4 basis points to 4.387%, and the 30-year yield was up 5 basis points at 4.914%. The 2-year yield was higher by 2 basis points, reaching 3.887%. Asia markets closed mixed as we head into the weekend. Japan’s benchmark Nikkei 225 slipped 0.19% to close at 39,569.68, while the Topix added 0.39% to end the trading day at 2,823.24. South Korea’s Kospi was 0.23% lower at 3,175.77 and the small-cap Kosdaq closed 0.35% higher at 800.47. Australia’s S&P/ASX 200 slid 0.11% to end the day at 8,580.1. Mainland China’s CSI 300 rose 0.12% to 4,014.81. Oil prices were stable on Friday, as investors weighed a weaker market outlook for this year by the International Energy Agency (IEA) despite tightness in the prompt market, in addition to tariff concerns and possible further sanctions on Russia. Brent crude futures were up 19 cents, or 0.28%, at $68.83 a barrel. U.S. West Texas Intermediate crude ticked up 25 cents, or 0.38%, to $66.82 a barrel. Both contracts were little changed on the week, with Brent headed for a 0.8% gain against last Friday’s close, and WTI for a 0.3% loss against last Thursday’s close as markets were closed on July 4. Gold prices rose for a third straight session on Friday, as U.S. President Donald Trump’s announcement of new tariffs on Canada and broader tariff threats against other trading partners lifted demand for the safe-haven asset. Spot gold was up 0.4% at $3,334.99 per ounce as of 0918 GMT. U.S. gold futures gained 0.6% to $3,345.30. “We’re seeing some growing demand for gold as a haven. There are investors looking for some safety assets despite stock markets hitting highs. And any dip in gold is seen as a buying opportunity now,” said Carlo Alberto De Casa, an external analyst at Swissquote.