People were seen walking through Toronto’s financial district on Friday. Photo credit: Andrew Lahodynskyj / The Canadian Press.
Canada’s main stock index and Wall Street markets wrapped up the week on a high note Friday, defying economic concerns and looming trade troubles. While U.S. and Canadian equities showed strong gains, uncertainties around tariffs continue to cast a shadow — especially for Canada.
TSX Rises Despite Trade Worries
The S&P/TSX composite index climbed by 122.09 points to close at 27,494.35. Investors pushed the index higher, shrugging off fears of upcoming U.S. tariffs and slower economic growth.
U.S. Markets Set New Highs
In the U.S., all three major indexes closed higher, with the S&P 500 and Nasdaq reaching new records.
- Dow Jones: Rose 208.01 points, closing at 44,901.92.
- S&P 500: Gained 25.29 points to finish at an all-time high of 6,388.64.
- Nasdaq: Added 50.36 points, settling at 21,108.32.
Jillian Bryan, a senior investment adviser at TD Wealth, remarked on the market’s surprising resilience: “Investors were bracing for impact, but the market has kept pushing forward. Tariffs, recession fears — none of it has slowed things down much.”
Tariff Deadline Nears, Tensions Build with Canada
A major concern on the horizon is the August 1 expiration of the U.S. pause on global tariffs. Deals have already been struck with countries like Japan and the Philippines. But Canada remains a sore point.
U.S. President Donald Trump made it clear Friday that negotiations with Canada have been unproductive. “We haven’t had a lot of luck with Canada,” he said, adding that a trade agreement hasn’t been a priority.
He even suggested that Canada might be hit with tariffs outright: “I think Canada could be one where they just pay tariffs — not really a negotiation.”
Trump has sent a warning to Canadian Prime Minister Mark Carney, threatening a 35% tariff on Canadian goods if no agreement is reached by the end of next week. These duties would target products not aligned with the Canada-U.S.-Mexico Agreement (CUSMA).
Investor Uncertainty Grows
Bryan acknowledged that the unpredictable nature of trade talks makes it difficult to plan. “The goalposts keep moving. Trying to guess Trump’s next move is nearly impossible,” she said.
For her clients, Bryan focuses on conservative strategies like bonds and fixed income investments to guard against volatility. She also noted that consumer behavior is changing — many are making large purchases now to avoid future tariff-related price hikes. But this could lead to weaker demand later in the year.
📊 Corporate Results Boost U.S. Stocks
Several companies outperformed expectations this quarter:
- Deckers (owner of Ugg and Hoka) soared over 11% after a strong spring earnings report.
- Edwards Lifesciences jumped 5.5% after also beating forecasts.
However, not all companies fared well. Intel tumbled 8.5% after reporting a quarterly loss. The chip giant announced job cuts and spending reductions as part of its recovery plan.
Currency and Commodity Movements
- Canadian Dollar: Slipped to 72.97 cents US, down from 73.37 on Thursday.
- Crude Oil: Dropped 87 cents to US$65.16 per barrel.
Gold: Fell US$37.90 to US$3,335.60 per ounce.
