US stocks erased earlier gains on Friday after briefly hitting new record highs, as investor sentiment cooled following unexpected comments from President Donald Trump about terminating trade talks with Canada. The S&P 500 slipped 0.1% after touching a fresh peak, the Nasdaq lost 0.3% after also reaching a record, while the Dow Jones rose 252 points. Markets had rallied earlier in the day on optimism over new trade agreements with several key partners, including a framework deal with China. However, Trump’s abrupt announcement regarding Canada unsettled investors, cutting into the session’s gains. Still, the broader market has made a strong recovery from April lows, driven by easing inflation concerns, solid corporate earnings, and renewed strength in tech leaders such as Nvidia and Microsoft. Economic data also supported the rebound, with consumer sentiment improving and core PCE inflation rising only slightly.