Kris Backus, the broadcast manager at TMX Group Ltd., oversees operations at the company's broadcast center in Toronto's financial district. This photo was taken on Friday, May 9, 2014. (THE CANADIAN PRESS/Darren Calabrese)


March 18, 2025 Tags:

Canada’s stock market saw a strong comeback on Monday, with the S&P/TSX composite index climbing more than 200 points. The surge was driven by gains in the energy, financial, and base metals sectors. Meanwhile, U.S. stock markets also bounced back after recent losses.

Market Recovery After Recent Slump

Monday’s market rally helped recover some of the losses from the past couple of weeks. Mona Mahajan, a senior investment strategist at Edward Jones, noted that a rebound is common after a market correction. Recently, the S&P 500 dropped by 10% due to uncertainty surrounding U.S. trade policies.

U.S. President Donald Trump’s back-and-forth on tariffs has fueled volatility. Over the past two weeks, he has imposed new tariffs, postponed some, introduced additional ones, and hinted at more to come. The shifting policies have created uncertainty, causing fluctuations in the stock market.

Key Tariff Deadlines Ahead

Investors are now closely watching April 2, when Trump’s promised “reciprocal” tariffs are set to take effect. Additional tariffs on certain sectors may also be announced on the same date. Furthermore, temporary exemptions on select goods from Canada and the U.S. are due to expire next month, adding more uncertainty to trade relations.

The Toronto Stock Exchange’s S&P/TSX composite index finished the day up by 231.71 points, closing at 24,785.11. On Tuesday, Canada will release inflation data for February. Mahajan mentioned that inflation has been stable for now, but future trends will depend on how trade policies evolve.

U.S. Markets Also Surge

In the U.S., markets also saw a sharp rise. The Dow Jones Industrial Average jumped 353.44 points, closing at 41,841.63. The S&P 500 index gained 36.18 points to reach 5,675.12, while the Nasdaq composite rose by 54.58 points to 17,808.66.

The latest U.S. retail sales data was released on Monday. Although the numbers were slightly weaker than expected, analysts pointed out that consumer spending remains steady. Mahajan emphasized that the report eased some concerns that consumer confidence was faltering.

Federal Reserve’s Interest Rate Decision Looms

All eyes are now on the U.S. Federal Reserve, which will announce its latest interest rate decision on Wednesday. The central bank is expected to keep rates unchanged, but investors are eager to hear Fed Chairman Jerome Powell’s remarks on tariffs and the economic outlook.

Previously, the Fed projected two interest rate cuts for 2025, but there is speculation that a third cut may be added to the forecast. Mahajan suggested that the Fed might also revise its economic growth outlook. If a downgrade happens, it could indicate that the Fed sees signs of economic weakness ahead, raising expectations for future rate cuts.

Currency & Commodity Market Updates

The Canadian dollar strengthened slightly, trading at 69.91 cents US, up from 69.50 cents US on Friday.

In the commodities market, crude oil prices rose by 46 cents to reach US$67.37 per barrel, while natural gas fell by eight cents to US$4.02 per mmBTU. Gold prices increased by US$5.00 to hit US$3,006.10 per ounce, and copper prices gained six cents, reaching US$4.96 per pound.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

Trump’s Tariff War to Slow North American Economies, OECD Warns

The ongoing trade war sparked by U.S. President Donald Trump’s tariff policies is expected to weaken economic growth in the....

Federal Tax Holiday Ends: Inflation Expected to Rise in February

Economists predict that Canada’s inflation rate likely climbed in February after the federal government’s temporary sales tax break ended mid-month.....

Stock Market Faces Uncertainty as Liquidity Concerns Grow

The recent decline in the S&P 500 has been strikingly steady, avoiding the dramatic spikes in volatility often seen during....

Wall Street’s S&P 500 Profit Outlook Dims as Tariffs Threaten

Wall Street’s confidence in the profit potential of major U.S. companies is weakening, adding pressure to an already struggling stock....

Wall Street's Best Day in Months Can't Save Its Losing Streak

Wall Street saw a powerful rally on Friday, marking its strongest trading session in months. Despite the surge, it wasn’t....

Bank of Canada Cuts Rate, Warns of Severe Trade War Impact

The Bank of Canada has lowered its key interest rate by 25 basis points, bringing it to 2.75%—the lowest level....

Canada Strikes Back with $30B Tariffs as Trade Tensions Rise

In response to the U.S. imposing a 25% tariff on steel and aluminum, Canada has unveiled new trade measures worth....

Asian Stocks Mixed as Wall Street Briefly Dips Over 10%

Asian markets showed a mixed performance on Wednesday as investors reacted to ongoing trade tensions following another turbulent day on....

Trump’s 25% Tariffs on Steel and Aluminum Imports Take Effect

President Donald Trump has officially implemented a 25% tariff on all steel and aluminum imports, aiming to boost domestic factory....

Stock Market Stumbles as Trump’s Tariffs Shake Investor Confidence

Market Woes Deepen as Tariff Uncertainty Grows The U.S. stock market has taken a severe hit, losing $4 trillion in....

Asian Markets Tumble as Trump’s Tariffs Shake Global Investors

Asian stocks took a sharp dive on Tuesday, mirroring Wall Street’s recent downturn as concerns over U.S. tariffs rattled markets.....

Canucks' Scoring Struggles Continue in Playoff Battle

The Vancouver Canucks' ongoing scoring troubles cost them another crucial game, falling 4-1 to the Dallas Stars on Sunday. As....