Dow Jones futures fell early Friday, along with S&P 500 futures and Nasdaq futures, as President Donald Trump announced a 35% tariff on Canadian goods and floated a higher global baseline.
On Thursday, the stock market rally erased early losses to close slightly higher, with the S&P 500 and Nasdaq hitting fresh all-time highs.
Once again, many growth stocks tumbled on a decent market day, with Nvidia-backed IPO CoreWeave breaking lower. Many cybersecurity and software plays such as Rubrik and Palo Alto Networks also had a rough session.
But Nvidia nudged higher, closing above a $4 trillion market cap. Rival Advanced Micro Devices made a strong move, flashing a new aggressive entry.
Delta Air Lines gapped above an entry on strong earnings and guidance. 3M, recent real estate IPO Millrose Properties and Boot Barn broke out.
Stocks Hold Up, But This Is Worrisome; Trump Tariffs, Inflation, Earnings In Focus
Dow Jones Futures Today
Dow Jones futures fell 0.5% vs. fair value. S&P 500 futures retreated 0.5% and Nasdaq 100 futures declined 0.4%.
The 10-year Treasury yield rose a few basis points to 4.38% after edging higher to 4.35% on Thursday.
U.S. crude oil rose more than 1% after sinking 2.65% to $66.57 a barrel on Thursday.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump Imposes New Canada Tariff
President Donald Trump said he will impose a 35% tariff on Canada as of Aug. 1. Canada had been spared the April 2 Liberation Day "reciprocal" tariffs that Trump paused for 90 days, but already faces 25% duties on a variety of goods. Trump reportedly will keep a tariff exemption for Canadian goods that fall under the U.S.-Mexico-Canada Agreement.
Two weeks ago, Trump broke off trade talks with Canada unless it scrapped a pending digital service tax. Canada did, and then Trump pushed ahead with a large, unilateral tariff.
Trump says he'll issue his tariff letter for the European Union by Friday.
This week's tariffs had generally been in line with the April 2 reciprocal tariffs. But Trump is threatening a 50% tariff vs. Brazil because it's putting former President Jair Bolansaro on trial. And Canada
Further, Trump said he's considering raising the 10% baseline tariff to 15%-20%.
Meanwhile, Vietnam reportedly was surprised by President Trump's announcement last week that Hanoi agreed to a 20% tariff on its goods as part of their tentative agreement, expecting a 10%-15% rate, Bloomberg reported.
The stock market dived on the original April 2 Liberation Day tariffs, but so far have taken the revised duties in stride, even though they are similar to higher. Perhaps markets have grown accustomed to the idea of historically high tariffs, or they may still be expecting deals or further delays.
On the flip side, Trump has generally delayed or modified tariffs in reaction to market sell-offs. As long as the stock market is at record highs, he may feel emboldened.
There's some concern that existing tariffs will finally start to feed into inflation, and a new tariff spike would add to those concerns.
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Stock Market Rally
The stock market rally started off with slim losses on the major indexes that eventually turned to slight gains, with the S&P 500 and Nasdaq hitting fresh highs.
The Dow Jones Industrial Average rose 0.4% in Thursday's stock market trading. The S&P 500 index climbed 0.3%. The Nasdaq composite edged up 0.1%. The small-cap Russell 2000 advanced 0.5%.
The Invesco S&P 500 Equal Weight ETF outperformed the S&P 500, rising 0.6% to a 2025 high. The First Trust Nasdaq 100 Equal Weighted Index ETF dipped 0.3%.
The Innovator IBD 50 ETF slumped 1.9% after opening higher. It's the FFTY's fifth downside reversal with a 1%-plus loss in the past 11 sessions. However, the growth stock ETF has continued to trend higher during the span, quickly bouncing back after losses.
Best Growth Stocks To Buy And Watch
ETFs
Among other growth ETFs, the iShares Expanded Tech-Software Sector ETF slumped 2%. The VanEck Vectors Semiconductor ETF gained 0.7%, with Nvidia and AMD stock both SMH giants. ARK Innovation ETF rose 1.6% and ARK Genomics ETF edged up 0.2%.
SPDR S&P Metals & Mining ETF jumped 5.3%. U.S. Global Jets ETF soared 7.3%. SPDR S&P Homebuilders ETF was up 1%. The Energy Select SPDR ETF rose 0.8%
The Health Care Select Sector SPDR Fund, Industrial Select Sector SPDR Fund and Financial Select SPDR ETF all climbed 0.6%.
Time The Market With IBD's ETF Market Strategy
CoreWeave Stock
CoreWeave stock helped drag down the FFTY ETF. The hot IPO tumbled 9.6%, decisively breaking below the 21-day moving average. Shares are still well above the 50-day or 10-week lines that could be areas of support. The AI compute provider, which came public in late March, boasts Nvidia as a key backer and customer.
AMD Flashes Buy Signals
On the upside, AMD stock popped 4.15% to 144.16. HSBC doubled its AMD price target to 200, citing the company's AI chip pipeline. Investors could have used Thursday as an early entry in a too-low handle in a huge, 16-month consolidation.
For its part, Nvidia stock edged up 0.75% to a fresh high, closing with a $4.004 trillion valuation. Nvidia CEO Jensen Huang met with President Donald Trump on Thursday. Huang will meet with top Chinese officials next week.
Four Non-Tech Stocks Clear Buy Points
Outside of tech growth plays, Delta stock gapped up 12%, clearing the 200-day line and a base within a larger consolidation.
Dow giant 3M rose 0.9% to 157.32, topping a 136.35 buy point. Earnings are next week.
Boot Barn stock advanced 2.9% to 173.36, above a 170.16 buy point from a very deep cup-with-handle base.
Millrose stock gained 1.9% to 29.50, clearing a 28.99 buy point from a flat base, base-on-base formation. The Lennar spinoff buys and sells land to builders, letting the latter keep their assets light.
What To Do Now
The stock market rally continues to hit record highs. But it's a tricky time to buy growth stocks, with many suffering big losses, at least for a day, after briefly flashing buy signals.
Investors, who should already have heavy exposure, should be cautious about making new growth buys, though some may continue to work. Know your exit strategies going in.
There may be more opportunities in other fields, such as aerospace, industrials, materials and more. Having a diversity of leadership can limit your potential downside.
At the very least, make sure your watchlist includes a wide variety of stocks outside of traditional tech growth names.
Earnings season is just getting underway but will pick up in a hurry.
Rubrik stock is on IBD Leaderboard, while CoreWeave is on the Leaderboard watchlist. CoreWeave stock and Rubrik are on the IBD 50. Nvidia stock is on IBD Sector Leaders. Millrose Properties was Thursday's IBD Stock Of The Day.
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