(Bloomberg) -- US stock futures retreated Friday after the latest threat on tariffs from the Trump administration took the shine off a record rally for the S&P 500.

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Contracts for the US benchmark fell 0.6% after the gauge ended the trading week at a fresh all-time high, with payrolls data affirming the economy’s resilience. Trump dialed up trade tensions after Thursday’s close, warning partners he may start setting levies of as much as 70% unilaterally as soon as today.

Europe’s Stoxx 600 dropped 0.7%, with trade-exposed miners and automakers among the biggest decliners. Asian stocks also fell. Gold rose 0.3% as investors sought havens. The dollar dipped. US stocks and Treasury markets were closed for the July 4 holiday.

Equity markets have rallied sharply since April’s tariff-related volatility. Still, some investors remain cautious as uncertainties surrounding the trade war and its potential impact on the US economy and corporate earnings persist.

“There’s a little bit of doubt of creeping in, especially after the bump up this week,” said Neil Wilson, investor strategist at Saxo UK. “Today’s a good day to take a little bit of risk off. But I don’t think there’s a fundamental shift, it’s all on the margins at the moment.”

What Markets Live Strategists Say:

“It would take a shocking set of trade outcomes to overwhelm the slew of good news we’ve recently had. All the more so, given that the bullishness of institutional investors has been tempered by constant threats, leaving them relatively underexposed to a market at record highs.”

— Mark Cudmore, Markets Live Executive Editor

The S&P 500’s surge has put it on the verge of triggering a sell signal, according to Michael Hartnett of Bank of America Corp.

The strategist advised that investors consider trimming their holdings once the index climbs beyond 6,300, a level just 0.3% above where it closed on Thursday. He also reiterated that bubble risks are mounting into the summer, especially following the House’s approval of a $3.4 trillion fiscal package featuring tax cuts.

“Overbought markets can stay overbought as greed is harder to conquer than fear,” Hartnett wrote in a note.

European bond markets firmed on Friday, but UK gilts made little headway after a selloff on Wednesday that was driven by fiscal concerns. The yield on 10-year UK government debt was little changed at 4.53%, compared with 4.45% at the close on Tuesday. The pound was flat.

Story Continues

In signs of diplomatic and trade tensions escalating between China and the European Union, Beijing said it intends to cancel part of a two-day summit with EU leaders planned for later this month.

China also imposed anti-dumping duties on European brandy for five years, while exempting major cognac makers that meet a price commitment. Remy Cointreau SA briefly slipped before trading higher. Pernod Ricard SA pared losses.

In commodities, oil dropped in the lead-up to an OPEC+ meeting that’s set to deliver another oversized production hike, threatening to swell a glut forecast for later this year.

Corporate Highlights:

Air France-KLM will initiate the process of raising its minority stake in Scandinavian airline SAS AB to 60.5%, as it looks to extend consolidation in European aviation. India’s regulator has temporarily barred Jane Street Group LLC from accessing the local securities market, dealing a severe hit to the US firm that allegedly made $4.3 billion in trading gains in the South Asian nation in less than two years. French train maker Alstom SA has won a €2 billion ($2.4 billion) order from New York’s Metropolitan Transportation Authority, which is in the process of modernizing its fleet. A European insurance group backed by Apollo Global Management Inc. offered to acquire a specialist UK insurer that’s partly owned by a company controlled by South African billionaire Johann Rupert for about £5.7 billion ($7.8 billion).

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 fell 0.7% as of 10:55 a.m. London time S&P 500 futures fell 0.6% Nasdaq 100 futures fell 0.5% Futures on the Dow Jones Industrial Average fell 0.5% The MSCI Asia Pacific Index fell 0.3% The MSCI Emerging Markets Index fell 0.5%

Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1779 The Japanese yen rose 0.4% to 144.33 per dollar The offshore yuan rose 0.1% to 7.1629 per dollar The British pound was little changed at $1.3658

Cryptocurrencies

Bitcoin fell 0.9% to $108,994.31 Ether fell 1.9% to $2,552.14

Bonds

The yield on 10-year Treasuries was little changed at 4.35% Germany’s 10-year yield declined three basis points to 2.59% Britain’s 10-year yield was little changed at 4.53%

Commodities

Brent crude fell 1% to $68.09 a barrel Spot gold rose 0.3% to $3,335.67 an ounce

This story was produced with the assistance of Bloomberg Automation.

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