James Denaro, a specialist, stands on the right while trader Dylan Halvorsan works nearby at the New York Stock Exchange on Tuesday, April 22, 2025. (Photo: Richard Drew/AP)
Canada’s main stock index saw a sharp rebound Tuesday, rising nearly 300 points as energy, financial, and metal sectors pushed higher. The U.S. markets also posted healthy gains, bouncing back after Monday’s losses.
According to Ryan Crowther, a portfolio manager at ClearBridge Investments, the rally wasn't sparked by any big economic news. Instead, it was a natural bounce following Monday's slump. “There was room to recover,” he said, adding that several major tech companies helped lift the markets after their recent dip.
The S&P/TSX composite index ended the day up by 297.12 points, closing at 24,305.98. In the U.S., the Dow Jones soared by 1,016.57 points to finish at 39,186.98. The S&P 500 rose 129.56 points to 5,287.76, and the Nasdaq jumped 429.52 points to 16,300.42.
In the U.S., Treasury Secretary Scott Bessent shared his optimism on trade relations with China. Speaking on Tuesday, he said he believes the trade conflict between the two countries may be cooling down. Tensions had escalated after the Trump administration introduced wide-ranging tariffs, affecting global markets.
Crowther noted that while Tuesday’s rally was welcome, markets remain shaky and uncertain. Investors are waiting for clearer signals, especially on the trade front. “It’s hard to see a long-lasting rally without more clarity,” he said.
Earnings season has also kicked off in the U.S., with several companies beating expectations. However, Crowther pointed out that these earnings reports didn’t have much immediate impact on Tuesday’s gains. Much of the market’s attention is focused on key tech firms, especially Tesla, whose earnings report was scheduled after markets closed. Tesla later announced a significant drop in its first-quarter profits—down by more than two-thirds.
Investors are looking for signs of growth from these tech giants, which were strong performers in 2023 and early 2024 before global trade tensions dragged them down.
The Canadian dollar remained relatively stable, trading at 72.32 cents US compared to 72.36 cents the previous day.
Meanwhile, in commodities, gold continues to shine amid market volatility. Crowther said gold has solidified its status as a safe haven, with prices climbing nearly 30% this year. Despite a slight dip on Tuesday, gold remained strong overall. The June gold contract slipped $5.90 to $3,419.40 per ounce.
Oil prices edged higher, with the June crude contract rising $1.26 to $63.67 per barrel. However, natural gas saw a slight dip, falling by a penny to $3.01 per mmBTU. Copper, another key commodity, rose 15 cents to $4.88 per pound.
