05:11 PM EDT, 07/18/2025 (MT Newswires) -- The Dow Jones Industrial Average fell Friday following a report that President Donald Trump was demanding higher-than-expected tariffs on the European Union, while the Nasdaq Composite edged higher to reach a fresh record high.

The Dow dropped 0.3% to 44,342.2. The tech-heavy Nasdaq rose 0.1% to 20,895.7, notching a new closing high for a fifth day in a row. The S&P 500 was nearly flat at 6,296.8, after rising to a record level at market close on Thursday. Energy led the decliners among sectors, while utilities saw the biggest gain.

Trump is advocating for a minimum tariff of 15% to 20% on EU goods, up from a baseline tariff of 10%, the Financial Times reported, citing sources.

For the week, the Nasdaq advanced 1.4% and the S&P 500 climbed 0.5%. The Dow fell 0.2%.

"Economic and financial conditions are looking better today than they have in months, but downside growth risks continue to fester in the second half of the year," Scott Anderson, chief US economist at BMO, said in a report published Friday. "We will likely see more tariff uncertainty and shocks in just a couple of weeks."

US Treasury yields were lower, with the the 10-year rate losing 3.4 basis points to 4.42% and the two-year rate decreasing 3.3 basis points to 3.88%.

In economic news, US consumer sentiment rose in July to the highest level in five months, while year-ahead inflation expectations dropped for a second month in a row, according to preliminary results from a University of Michigan survey.

"Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future," Joanne Hsu, Surveys of Consumers director, said.

On Thursday, Fed Governor Adriana Kugler said she favored holding interest rates steady "for some time" amid tariffs-induced upward pressure on inflation.

US housing starts rose more than expected last month as a double-digit percentage gain in multi-family projects helped offset weakness in single-family units, government data showed on Friday.

"We're expecting housing starts to fall below (1.3 million units) in the quarters ahead, with activity weighed down by elevated mortgage rates, softening housing demand, and an excess supply of completed new homes," Oxford Economics said.

West Texas Intermediate crude oil was down 0.2% at $67.41 a barrel in Friday late-afternoon trade.

The European Union has adopted a new set of sanctions against Russia, including reducing the price cap for the country's crude oil to $47.6 per barrel from $60, the Council of the EU announced Friday. "Oil exports still represent one third of the Russian government's revenues," according to the EU Council.

In company news, 3M ( MMM ) raised its full-year earnings outlook Friday as the industrial conglomerate recorded second-quarter results above Wall Street's estimates. The company's shares fell 3.7%, the steepest decline on the Dow and among the worst on the S&P 500.

American Express ( AXP ) followed 3M ( MMM ) on the Dow, down 2.4%, even as the payments company posted better-than-expected second-quarter results amid robust card member spending. American Express ( AXP ) reiterated its full-year outlook.

Dell Technologies ( DELL ) shares jumped 5.9%, among the top gainers on the S&P 500, as Goldman Sachs and BofA Securities raised their respective price targets on the stock.

Gold was up 0.4% at $3,357.1 per troy ounce, while silver added 0.5% to $38.49 per ounce.