A display board showing stock symbols is seen above the trading floor at the New York Stock Exchange on Tuesday, July 1, 2025. (AP Photo/Richard Drew)
Canada’s main stock market ended Wednesday slightly in the green, boosted by a strong performance in consumer-focused companies. Meanwhile, U.S. markets delivered a mixed bag, with some indexes climbing to record highs and others dipping.
The S&P/TSX composite index inched up by 12.55 points to finish at 26,869.66. Market expert Mike Archibald from AGF Investments noted that both Canadian and U.S. markets are holding up well, with the S&P 500 hitting record highs and the TSX approaching its own peak.
“There’s optimism returning,” Archibald said. He pointed out that the boost in consumer cyclical stocks came from surprising rebounds in previously underperforming companies, such as auto parts manufacturer Magna International, which surged 7.77%.
Adding to the day’s momentum, leaders from Ford Canada, Stellantis Canada, and GM Canada met Prime Minister Mark Carney in Ottawa. The conversation centered on strengthening Canada’s homegrown automotive supply chain.
South of the border, the Dow Jones Industrial Average dipped slightly by 10.52 points, closing at 44,484.42. However, the S&P 500 gained 29.41 points to reach 6,227.42, marking its third record in four days. The Nasdaq Composite also made headlines with a 190.24-point jump to 20,393.13.
Archibald linked the market's current strength to two key developments: a trade agreement between the U.S. and Vietnam, and ongoing progress on President Donald Trump's tax reform plan. Under the trade pact, American exports to Vietnam will enjoy zero tariffs, while Vietnamese imports into the U.S. will face a 20% duty.
This shift sparked investor interest in companies reliant on Southeast Asian production. For example, Nike stock climbed 4.06%, while Vancouver-based Aritzia rose 4.82%.
In the political arena, U.S. Republicans in the House are pushing for a swift vote on Trump’s tax and spending bill, aiming for passage by July 4. Despite the urgency, Archibald believes it’s likely to pass, with minor adjustments along the way.
Looking ahead, Archibald remains positive about Canada’s economic path, especially when it comes to financial stocks. “People often underestimate the strength of the Canadian economy,” he said, adding that Canadian banks are showing strong performances — not a sign of a struggling economy.
The Canadian dollar also inched higher, trading at 73.41 cents U.S., up from Monday’s 73.30 cents.
In commodities, crude oil for August rose by $2.00 to settle at $67.45 per barrel, and gold climbed $9.90 to $3,359.70 an ounce, signalling continued investor confidence in safe-haven assets.
