Edward Curran, a trader, is seen at work on the floor of the New York Stock Exchange on Wednesday, May 14, 2025. (AP Photo/Richard Drew)
Canada’s stock market edged slightly higher on Wednesday, with gains in tech, industrial, and financial stocks balancing out declines in energy, telecoms, and utilities. Meanwhile, U.S. markets showed no clear direction as investors struggled to figure out what’s next for global trade.
The S&P/TSX composite index rose by 75.59 points, closing at 25,692.45. While not a major surge, the uptick signals a cautious optimism among investors, especially after Monday’s sharp rally fueled by easing trade tensions between the U.S. and China.
Andrew Buntain, vice-president and portfolio manager at Fiduciary Trust Canada, said the market has been holding steady since the beginning of the week. “There’s some hope in the air now,” he noted. “But investors are still unsure if it’s the right moment to fully embrace risk.”
South of the border, U.S. markets painted a mixed picture. The Dow Jones Industrial Average slipped 89.37 points to close at 42,051.06. On the other hand, the broader S&P 500 managed to gain 6.03 points, ending the day at 5,892.58. The tech-heavy Nasdaq did better, climbing 136.72 points to 19,146.81.
While the 90-day pause in the U.S.-China trade war has given markets some breathing room, uncertainty still hangs in the air. Buntain believes that this recent sideways trading shows investors are being cautious. “It’s a mental shift, yes,” he said. “But people are still nervous — anything from a tweet to a new policy comment could rattle the markets.”
That sense of unpredictability has made short-term thinking the norm. The past few weeks have been a wild ride, and investors aren’t taking any chances. Buntain emphasized how quickly momentum can change, especially when global trade or political news breaks without warning.
The Canadian dollar made a slight gain as well, trading at 71.61 cents US, compared to 71.59 cents US the day before.
The markets in Canada also saw a small boost following Prime Minister Mark Carney’s new cabinet announcement. Still, Buntain warns that it's too early to expect major moves. “Canadians want steady leadership that follows through on promises,” he said. These include policies tied to natural resources and competitive taxation. “It’s up to the government now to turn those words into action.”
In commodities, oil, natural gas, and metals all saw modest drops. The June crude oil contract dipped 52 cents to settle at US$63.15 per barrel. Natural gas slipped by 16 cents to US$3.49 per mmBTU. Gold prices fell sharply by US$59.50, ending at US$3,188.30 an ounce, while copper dropped seven cents to US$4.65 per pound.
