Canada’s main stock index fell on Thursday as energy, telecom, and technology stocks declined.
Canada’s main stock index dipped on Thursday as energy, telecom, and tech stocks declined, while U.S. markets ended with mixed results.
The S&P/TSX composite index dropped 35.35 points, closing at 25,534.49. South of the border, the Dow Jones fell by 125.65 points to 44,747.63, but the S&P 500 gained 22.09 points, landing at 6,083.57. The Nasdaq composite climbed 99.66 points, finishing at 19,791.99.
Market Struggles Amid Tariff Uncertainty
Investors remained on edge due to concerns over potential tariffs, which have added volatility to the markets. Mike Archibald, vice president and portfolio manager at AGF Investments Inc., noted that earnings reports have been mixed, further impacting market sentiment.
"Some results have disappointed investors," he said. "Ford didn’t perform well, and Canadian stocks like Colliers, El Dorado, Bombardier, and Lightspeed have taken a hit today, weighing on the market."
Ford’s stock tumbled 7.5% after its latest financial outlook failed to impress investors. Meanwhile, Lightspeed saw a sharp 12.9% drop following an unsuccessful strategic review, and Bombardier slipped 5.7% after holding back its financial forecast due to tariff concerns.
Eyes on Amazon and Jobs Data
Investor attention turned to Amazon, whose earnings were set to be released after market hours. Additionally, Friday's upcoming U.S. jobs report will be crucial in shaping expectations for interest rate decisions by the Federal Reserve.
"If job numbers are too strong, it could reduce the likelihood of rate cuts this year," Archibald noted. Markets have priced in two rate cuts for 2024, but a strong economy could push the Fed to delay action.
In Canada, Statistics Canada will also release its jobs data on Friday. December's unemployment rate stood at 6.7%, slightly lower than November’s figure but still trending upward. The Bank of Canada has already cut rates a few times, and further reductions may be possible if tariffs hit the economy.
Commodity and Currency Update
The Canadian dollar traded at 69.82 cents US, slightly lower than Wednesday’s 69.95 cents US.
Oil prices saw a dip, with the March crude contract down 42 cents at US$70.61 per barrel. Natural gas prices, however, edged up by five cents to US$3.41 per mmBTU.
Gold slipped by US$16.30 to US$2,876.70 per ounce, while copper gained two cents, reaching US$4.46 per pound.
