TORONTO – Canada’s main stock index rose more than 200 points on Monday, led by strength in the energy, base metal and technology sectors, while U.S. stock markets also climbed.
The gains came despite an announcement from U.S. President Donald Trump over the weekend that he would impose 25 per cent tariffs on all steel and aluminum imports starting Monday. The executive orders were scheduled for midday, but pushed to after the close of trading, with no reason given for the delay.
“As much as the threat of tariffs for Canada is indeed a very real one for Canadians and Canadian investors for several reasons, seeing the market shrug off yesterday’s announcements is not a surprise,” said Ryan Crowther, portfolio manager at ClearBridge Investments.
The threat of tariffs isn’t a shock anymore, said Crowther: “By the time we reached Feb. 3 … there was some element of fear already priced in.”
“It’s really a matter of investors chasing a moving target.”
The S&P/TSX composite index closed up 215.95 points at 25,658.86.
In New York, the Dow Jones industrial average was up 167.01 points at 44,470.41. The S&P 500 index was up 40.45 points at 6,066.44, while the Nasdaq composite was up 190.87 points at 19,714.27, as large tech names were some of the strongest forces lifting U.S. markets higher.
This week will bring more earnings reports from U.S. companies. Monday saw McDonald’s miss on profit and revenue, but its stock still rose as investors focused on better-than-expected strength for its locations outside the U.S.
As well, the U.S. inflation report this week is as important as ever as the U.S. Federal Reserve looks ahead to its next interest rate decision, said Crowther.
In Canada, news that TD is selling its stake in Charles Schwab and planning to use the proceeds to repurchase shares and reinvest in its business drove the bank’s stock price up 3.9 per cent.
The TSX also got a boost from commodities Monday, noted Crowther.
“Gold continues to benefit from the backdrop of uncertainty and confusion sort of looming in the background,” he said.
Gold often rises in an uncertain environment as investors look to hedge against volatility.
The Canadian dollar traded for 69.82 cents US compared with 69.94 cents US on Friday.
The March crude oil contract was up US$1.32 at US$72.32 per barrel and the March natural gas contract was up 13 cents at US$3.44 per mmBTU.
The April gold contract was up US$46.80 at US$2,934.40 an ounce and the March copper contract was up 12 cents at US$4.71 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Feb. 10, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
