01:38 PM EDT, 07/11/2025 (MT Newswires) -- US benchmark equity indexes were mostly lower intraday as markets tracked the latest trade developments.

The Dow Jones Industrial Average was down 0.7% at 44,348.5 after midday Friday, while the S&P 500 fell 0.3% to 6,264.6. The Nasdaq Composite was little changed at 20,636.4. On Thursday, the S&P 500 and the technology-heavy Nasdaq notched new record closing highs.

Among sectors, health care saw the biggest drop intraday Friday, while energy paced the gainers.

In a letter sent to Canada on Thursday, President Donald Trump said the US will impose 35% tariffs on Canadian imports, effective Aug. 1, separate from all sectoral tariffs. The rate will go up if Canada retaliates, the letter said.

"Throughout the current trade negotiations with the (US), the Canadian government has steadfastly defended our workers and businesses," Canadian Prime Minister Mark Carney said in a post on X. "We will continue to do so as we work towards the revised deadline of Aug. 1."

The proposed tariff rate seems only for goods not covered by the US-Mexico-Canada Agreement, "so its scope would be more limited," Deutsche Bank said in a Friday client note.

US Treasury yields were higher intraday Friday, with the 10-year rate increasing 7.3 basis points to 4.42% and the two-year rate adding 3.4 basis points to 3.9%.

In company news, United Airlines (UAL) and JetBlue Airways' ( JBLU ) proposed Blue Sky partnership could reduce competition and raise fares, Democratic Senator Richard Blumenthal warned in a letter to the companies' chief executives, Reuters reported. United Airlines shares were down 4%, among the steepest declines on the S&P 500, while JetBlue ( JBLU ) fell 3.3%.

Gilead Sciences ( GILD ) was among the worst performers on the S&P 500, down 3.5%, as HSBC reduced its price target on the stock to $91 from $93.

Levi Strauss (LEVI) shares climbed 11%. The denim maker late Thursday lifted its full-year earnings and sales outlook on the back of stronger-than-expected fiscal second-quarter results.

Performance Food Group ( PFGC ) has drawn takeover interest from peer US Foods Holding ( USFD ) for a potential deal that would establish a food distribution company with about $100 billion of combined sales, Bloomberg News reported Friday, citing unnamed sources. Performance Food ( PFGC ) shares were up 4.4% intraday, while US Foods ( USFD ) was little changed.

West Texas Intermediate crude oil was up 2.8% at $66.43 a barrel.

Gold rose 1.3% to $3,370.1 per troy ounce, while silver jumped 4.5% to $39 per ounce.