The tariff threat casts a shadow over the optimistic sentiment of profitability, with US stock index futures trading lower in pre-market.

Trump's threat to increase tariffs has intensified concerns about a trade war, leading to a drop in stock index futures. However, strategists at Bank of America said that clients are expecting strong profits this summer to support the stock market. S&P 500 index futures and Nasdaq 100 index futures both fell by 0.6%. The US dollar strengthened against all major currencies. The yield on 10-year US Treasury bonds rose by 4 basis points to 4.39%. Trump threatened to impose a 35% tariff on some Canadian goods, higher than the current 25% tariff on US imports from Canada not transported according to the terms of the USMCA agreement. Trump also told NBC News that he is considering imposing a 15% to 20% comprehensive tariff on most trading partners. Traders have become "numb" to tariff developments in recent days, as the S&P 500 index hit a record high on Thursday - leading some to believe that the risk of a pullback has emerged. Bank of America strategist Michael Hartnett wrote that the bank's clients expect a "healthy 'recovery' correction" later this year. However, for now, most people expect second-quarter earnings to exceed expectations.