Wall Street fell early in the week as uncertainty over President Donald Trump's tariffs and strong payrolls data weighed on the Federal Reserve's (Fed) interest rate cut.
Trump announced he would extend tariffs from July 9 to August 1 to give other countries more room to reach a trade deal.
He stressed that if no progress or agreement is reached by that date, new tariffs are expected to be implemented.
The move further pressured various countries to accelerate negotiations with the United States (US) before the extension period ends.
Treasury Secretary Scott Bessent said tariffs would start on August 1 if no deal is reached, but he expected more deals to be announced soon.
Washington has signed trade deals with the UK, Vietnam and China, while attention is now turning to possible talks with Japan, India and the European Union (EU).
The S&P 500 index fell 0.3 points to 6,303.0 points, the Dow Jones Industrial Average fell 0.3% to 44,972.0 points, while the technology-focused Nasdaq fell 0.3% to 22,987.0 points.
In other developments, non-farm payrolls data for June released on Thursday recorded a higher reading, indicating that the US labor market remains stable.
This situation indicates that the economy is not yet weak enough to require stimulus in the form of an interest rate cut by the Fed.
After Thursday's report was released, expectations for rate cuts in July and September declined, reflecting the economy's somewhat stronger ability to maintain current rates for longer.
