Edward McCarthy, a trader, is seen at work on the floor of the New York Stock Exchange on Thursday, April 24, 2025. (Photo: Richard Drew/AP)
Canada's main stock index closed sharply higher on Thursday, climbing more than 250 points in a widespread rally, with mining and metal companies leading the charge. U.S. markets followed the same upward path, marking their third straight day of gains as investor confidence showed signs of recovery.
The S&P/TSX composite index added 254.85 points, finishing the day at 24,727.53. That’s an increase of just over one percent. In the U.S., the momentum was even stronger. The Dow Jones Industrial Average rose 486.83 points to close at 40,093.40. Meanwhile, the S&P 500 climbed 108.91 points to reach 5,484.77, and the Nasdaq jumped 457.99 points to 17,166.04.
Analysts believe optimism about trade talks may be fuelling this rally. Although no fresh developments were announced on Thursday, investors seem hopeful that the U.S. might be open to negotiating its current tariffs, said Allan Small, senior adviser at ia Private Wealth.
He noted that while China officially denied being in discussions with the U.S. regarding tariff changes, the market still appears cautiously optimistic. “Even without solid confirmation, it looks like people are betting on some kind of shift from the current situation,” Small explained. “Any improvement is better than the deadlock we’ve had.”
Tensions between the U.S. and China have flared in recent years, particularly since the introduction of broad global tariffs under former President Trump. Still, with North American stock indexes facing downward pressure for much of the year, there are signs Trump may be reconsidering his aggressive trade approach.
Small suggested that the markets and economy are pushing back. “The bond market is sending signals. The stock market is reacting. The economy is making its voice heard,” he said.
Another factor behind the market’s positive momentum is the early start to the U.S. earnings season. So far, corporate reports have generally met or exceeded expectations. However, Small warned that many of these figures reflect the period before the latest wave of tariffs, and some companies may have rushed transactions ahead of the expected changes.
Even with strong earnings, company leaders have taken a cautious tone when discussing future performance. For instance, both Southwest Airlines and American Airlines posted better-than-expected profits but scaled back some of their projections due to the uncertain business environment.
On the currency front, the Canadian dollar edged up slightly, trading at 72.18 cents U.S. compared with 72.09 cents the previous day.
Commodity prices also showed movement. Crude oil for June delivery rose by 52 cents to reach US$62.79 per barrel. Natural gas dipped six cents to US$3.10 per mmBTU. Gold saw a significant jump, increasing by US$54.50 to US$3,348.60 an ounce. Copper added a penny to close at US$4.85 a pound.
