A trader focuses on his work at the New York Stock Exchange on Wednesday, March 12, 2025. (AP Photo/Richard Drew)
Canada’s main stock index saw a strong upswing on Tuesday, gaining more than 200 points, boosted by tech and financial shares. Meanwhile, major U.S. markets lost momentum and ended lower, despite showing early signs of strength.
The S&P/TSX composite index climbed by 201.40 points, closing at 24,067.93. On the other hand, the Dow Jones dropped 155.83 points to 40,368.96. The S&P 500 slipped by 9.34 points to 5,396.63, and the Nasdaq edged down 8.32 points to finish at 16,823.17.
According to Adelaide Chiu, vice president at NEI Investments, Tuesday’s session seemed like a momentary pause after days of unpredictable trading. “The market has been moving sharply in all directions,” she said, describing the recent stretch as hectic.
Global investors have been watching closely as tensions around tariffs and trade policies continue to stir the financial world. Earlier this month, U.S. President Donald Trump imposed tariffs on several countries, prompting quick reactions in markets. However, this latest update on tariffs didn’t spark as much concern.
One reason? Ottawa’s recent decision to grant a break to Canadian auto manufacturers. Finance Minister François-Philippe Champagne said carmakers will be allowed to import a limited number of U.S.-made vehicles without facing retaliatory tariffs. This exemption depends on how much those companies invest and produce within Canada, and if they meet the rules laid out under the Canada-U.S.-Mexico Agreement.
President Trump also hinted at giving U.S. auto companies some breathing room, suggesting temporary exemptions from tariffs as they transition operations. Chiu said this could be a win for Canada’s auto industry, giving it more stability moving forward.
Back in Canada, investors also reacted to the latest inflation figures. The annual rate for March slowed to 2.3 percent—lower than many expected. Experts are now split on how this might influence the Bank of Canada’s next move on interest rates.
“There’s still a lot of unknowns,” Chiu said, pointing to ongoing trade conflicts and their potential to hurt global growth.
Despite the tensions, some positive signals came from the U.S. banking sector. Earnings from big banks like Bank of America and Citigroup topped expectations, suggesting that American consumers are still spending and financially stable.
In other market activity, the Canadian dollar slipped slightly, trading at 71.77 cents U.S., down from 72.04 cents on Monday.
Oil prices edged lower, with June crude down 30 cents to US$60.75 a barrel. Natural gas prices rose slightly, gaining half a cent to US$3.33 per mmBTU.
Meanwhile, gold continued its climb, rising US$14.10 to US$3,240.40 an ounce. Copper prices stayed nearly unchanged, holding at US$4.63 per pound.
