Markets had dismissed tariff risks under the assumption that Trump would follow an earlier pattern and back off, in what became known as the so-called TACO trade. That allowed stocks to reach new record-high territory recently, marking a stunning rebound from the collapse triggered by his “Liberation Day” reciprocal tariffs in April.

President hardens stance on trade deadline, Nvidia gets closer to record $4 trillion market value, and more news to start your day.

Wall Street on Friday was poised for a negative open, with stock index futures down, as President Donald Trump slapped a 35% tariff on Canada and warned of further hikes if Ottawa retaliated. S&P 500 futures (SPX) -0.