U.S. stock-index futures slipped after Washington and Ottawa's trade talks collapsed and new tariffs took effect over the weekend. The S&P 500, Nasdaq, and Dow all closed out a losing week as investors weighed the tariff fallout against upcoming earnings from Nvidia and a Friday speech from Fed Chair Kevin Warsh.
U.S. stock-index futures slipped late Sunday as the United States and Canada appeared headed for an all-out trade war. Dow Jones Industrial Average futures were down about 40 points, or 0.1%, while S&P 500 and Nasdaq-100 futures also posted slight declines.
New tariffs deepen the rift
Talks for a new trade deal between the U.S. and Canada collapsed late Friday, and new 50% U.S. tariffs against about $20 billion in Canadian goods went into effect Saturday. Canadian Prime Minister Mark Carney said Canada would impose dollar-for-dollar tariffs against U.S. goods starting Sept. 8, targeting steel, dairy, paper, electronics, appliances, and agricultural equipment.
The affected goods make up about 5% of Canada's exports to the U.S., but the two countries exchange nearly $900 billion in goods and services annually, making the relationship one of the largest bilateral trade ties in North America. According to Crypto Briefing, Carney described the U.S. position as asking "too much, offered too little."
Wall Street closes out a rough week
The tariff standoff capped a week already marked by rising Treasury yields. The S&P 500 fell 1.4% on the week, its worst weekly decline since July 17, according to Dow Jones Market Data. The Nasdaq fell nearly 2% on the week, while the Dow dipped 0.9%.
What investors are watching next
Wall Street is awaiting quarterly earnings from Nvidia on Wednesday. Nvidia has been the S&P 500's biggest contributor to earnings growth in seven of the past 11 quarters, according to data from Seaport Research, and its results will serve as a bellwether for the AI industry. Salesforce, CrowdStrike, and Marvell Technologies also report earnings this week.
Investors are also looking to Fed Chair Kevin Warsh's keynote address from the Jackson Hole economic-policy symposium on Friday for signals on the central bank's rate strategy.
Sources: MarketWatch.com, Crypto Briefing
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