Published by Global Banking & Finance Review®
Posted on July 4, 2025
4 min readLast updated: January 23, 2026
Add as preferred source on GoogleStocks and the dollar fell after Trump signed a spending bill. With the trade deal deadline nearing, global markets are impacted, and investors are cautious.
By Lawrence White
LONDON (Reuters) -Stocks slipped on Friday as U.S. President Donald Trump got his signature tax cut bill over the line and attention turned to his July 9 deadline for countries to secure trade deals with the world's biggest economy.
The dollar also fell against major currencies, with U.S. markets already shut for the holiday-shortened week, as traders considered the impact of Trump's sweeping spending bill that is expected to add an estimated $3.4 trillion to the national debt.
The pan-European STOXX 600 index fell 0.5%, with banks, mining-related stocks and retailers among the top laggards.
U.S. S&P 500 futures edged down 0.6%, following a 0.8% overnight advance for the cash index to an all-time closing peak. Wall Street was closed on Friday for the Independence Day holiday.
Trump said Washington would start sending letters to countries on Friday specifying what tariff rates they would face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply.
Investors are "now just waiting for July 9", said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea.
At the same time, investors cheered a surprisingly robust U.S. jobs report on Thursday, sending all three of the main U.S. equity indexes climbing in a shortened session.
"The U.S. economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better (from here)," Sycamore said.
Following Thursday's close, the House narrowly approved Trump's signature, 869-page bill, which averts the near-term prospect of a U.S. government default but adds trillions to the national debt to fuel spending on border security and the military.
TRADE THE KEY FOCUS IN ASIA
Trump said he expected "a couple" more trade agreements, after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far.
U.S. Treasury Secretary Scott Bessent said earlier this week that a deal with India was close. However, progress on agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appears to have broken down.
The U.S. dollar index had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs heightened concerns about the U.S. economy and the safety of Treasuries, but had rallied 0.4% on Thursday before retracing some of those gains on Friday.
As of 1430 GMT it was down 0.1% at 96.94.
The euro added 0.2% to $1.1778, while sterling held steady at $1.3662 as British assets steadied following investor fright over the last two days at a tearful appearance by Finance Minister Rachel Reeves in parliament on Wednesday.
The U.S. Treasury bond market was closed on Friday for the holiday, but 10-year yields rose 4.7 basis points (bps) to 4.34%, while the 2-year yield jumped 9.3 bps to 3.882%.
Gold firmed 0.4% to $3,336 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the U.S.'s fiscal position and tariffs.
Brent crude futures fell 57 cents to $68.23 a barrel, while U.S. West Texas Intermediate crude dropped 66 cents to $66.34, as Iran reaffirmed its commitment to nuclear non-proliferation.
(Reporting by Lawrence White in London and Kevin Buckland in Tokyo; Editing by Stephen Coates, Kim Coghill, Alexandra Hudson, Joe Bavier and Alex Richardson)
Stocks slipped on Friday as investors reacted to Trump's spending bill, with the pan-European STOXX 600 index falling 0.5%.
The dollar fell against major currencies, reflecting traders' concerns about the implications of Trump's spending bill.
Trump mentioned he expected 'a couple' more trade agreements, including a recent deal with Vietnam, while progress with Japan and South Korea remains uncertain.
Investors cheered a surprisingly robust U.S. jobs report, which contributed to a rise in all three main U.S. equity indexes before the holiday.
The U.S. Treasury bond market was closed for the holiday, but yields rose, indicating investor sentiment regarding the fiscal position and tariffs.
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