(Adds latest stock moves, comment from trader, market details)

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Levi Strauss gains after hiking forecasts

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Trump slaps 35% tariffs on Canada

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S&P 500 -0.22%, Nasdaq +0.03%, Dow -0.59%

By Noel Randewich, Pranav Kashyap

July 11 (Reuters) - The S&P 500 dipped from record highs

on Friday, with Meta Platforms ( META ) losing ground after

President Donald Trump intensified his tariff offensive against

Canada, amplifying the uncertainty swirling around U.S. trade

policy.

Trump late on Thursday ramped up his tariff assault on Canada,

saying the U.S. would impose a 35% tariff on imports next month

and planned to impose blanket tariffs of 15% or 20% on most

other trading partners.

Caution also prevailed after Trump on Thursday imposed 50%

tariffs on Brazil and as the European Union braced for a

possible letter from Trump with details on fresh tariffs.

"The increased rhetoric around tariffs, what we've seen

this week regarding Brazil and Canada, is certainly elevating

the anxiety level," said Michael James, an equity sales trader

at Rosenblatt Securities. "People had become a little more

accustomed to the lack of negative tariff headlines, and we've

kind of been reminded that the tariff picture is still there."

Shares of Nvidia ( NVDA ) climbed over 1% to a record high,

extending the AI chipmaker's stock market value to $4.05

trillion.

Drone makers AeroVironment ( AVAV ) and Kratos Defense &

Security Solutions jumped about 11% after U.S. Defense

Secretary Pete Hegseth ordered a surge in drone production and

deployment.

The S&P 500 on Thursday hit a record high, and the index is

up about 6% so far in 2025.

The S&P 500 was last down 0.22% at 6,266.62 points.

The Nasdaq gained 0.03% to 20,637.08 points, while the Dow

Jones Industrial Average was down 0.59% at 44,388.38 points.

Of the 11 S&P 500 sector indexes, nine declined, led lower

by healthcare, down 1.07%, followed by a 0.99% loss in

financials.

Investors will soon turn their attention to second-quarter

reporting season, with a focus on how Trump's on-again off-again

tariffs are affecting major U.S. companies.

"We believe expectations are a bit low for S&P 500 earnings.

Much of the second quarter was marked with tariff and trade

issues and that may have caused some dislocations in earnings,"

said Michael Landsberg, chief investment officer, Landsberg

Bennett Private Wealth Management.

Levi Strauss & Co ( LEVI ) jumped 11% after the apparel seller

raised its annual revenue and profit forecasts and beat

quarterly estimates.

Meta Platforms ( META ) fell 1.2%. Reuters reported that Meta is very

unlikely to offer more changes to its pay-or-consent model,

increasing the risk of fresh EU antitrust charges and hefty

daily fines.

Across the U.S. stock market, declining stocks

outnumbered rising ones by a 2.8-to-one ratio.

The S&P 500 posted 10 new highs and 4 new lows; the Nasdaq

recorded 50 new highs and 36 new lows.