05:11 PM EDT, 07/11/2025 (MT Newswires) -- The S&P 500 and the Nasdaq Composite fell on Friday from fresh highs as investors closely watched updates on tariffs and awaited big banks to report results next week.

The S&P 500 fell 0.3% to 6,259.8 while the Nasdaq slipped 0.2% to 20,585.5, after the two indices notched record closing levels on Thursday. The Dow Jones Industrial Average dropped 0.6% to 44,371.5. Most sectors ended in the red, led by financials, while energy and consumer discretionary were the only two gainers.

For the week, the Dow declined 1%, the S&P 500 lost 0.3%, and the Nasdaq slipped 0.1%.

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.

Earlier in the week, Trump said the US will impose 50% tariffs on the country's products, effective Aug. 1. Trump criticized the ongoing prosecution of the country's former president, Jair Bolsonaro.

Brazil will respond to Trump's planned tariffs in accordance with the country's economic reciprocity law, CNBC reported Wednesday, citing Brazilian President Luiz Inacio Lula da Silva.

Big banks JPMorgan Chase ( JPM ) , Citigroup ( C ) and Wells Fargo (WFC) are scheduled to release their financial results on Tuesday, while Bank of America ( BAC ) , Morgan Stanley ( MS ) and Goldman Sachs ( GS ) report on Wednesday.

"This is the first quarter for US companies under (Trump's) tariff regime," Neil Wilson, investor content strategist at Saxo Bank, said in a note published on Friday. "Earnings season also comes as Trump ratchets up some tariff noise, potentially adding to the volatility and uncertainty for certain stocks and sectors."

US Treasury yields were higher, with the 10-year rate increasing 7.1 basis points to 4.42% and the two-year rate adding one basis point 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 fell 4.3%, among the steepest declines on the S&P 500, while JetBlue ( JBLU ) fell 3.7%.

Gilead Sciences ( GILD ) fell 4.3% 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 jumped 4.8%, while US Foods ( USFD ) was up 0.4%.

West Texas Intermediate crude oil was up 3% at $68.58 a barrel in Friday late-afternoon trade.

The International Energy Agency on Friday reduced its global oil demand outlook for 2025 and 2026, while raising supply estimates amid speculation that oil producing nations may be gearing up to pause production gains.

The Organization of the Petroleum Exporting Countries and its allies are considering pausing further production hikes from October, Bloomberg News reported Thursday, citing delegates familiar with the matter.

Gold rose 1.3% to $3,369.3 per troy ounce, while silver jumped 4.8% to $39.11 per ounce.