TORONTO – Canada’s main stock index fell more than 200 points Friday, weighed down by losses in energy and base metal stocks, while U.S. markets were mixed.
The S&P/TSX composite index closed down 215.28 points at 25,483.23.
In New York, the Dow Jones industrial average was down 165.35 points at 44,546.08. The S&P 500 index was down 0.44 points at 6,114.63, while the Nasdaq composite was up 81.13 points at 20,026.77.
“Investors are having panic about what (U.S. President Donald) Trump’s going to do over the weekend,” said Jennifer Tozser, senior wealth adviser and portfolio manager with Tozser Wealth Management at National Bank Financial Wealth Management.
All the uncertainty makes it hard for firms to plan ahead and have confidence, she said.
Tariffs are expected to hit Canada’s economy, which is already stagnating after interest rate hikes.
“It’s unknown if it’s going to be good or bad for the U.S. economy, but there’s a lot of consensus that it’s going to be bad for everybody else,” said Tozser.
This week, Trump signed an executive order for reciprocal tariffs as his threats escalated amid a tariff truce with Canada that expires in March.
Also this week, reports on U.S. inflation showed price growth continues to be persistent, with both reports coming in stronger than expected. Tariffs would add further upward pressure on inflation, said Tozser.
But unlike the recent bout of inflation, the U.S. Federal Reserve would have a harder time responding to tariff-induced inflation, she said.
“This is not something the Fed can effectively respond to,” she said.
On Wednesday, the Bank of Canada released its summary of deliberations for its most recent interest rate cut. In the meeting, officials had a similar message.
“Governing council members agreed that monetary policy cannot offset the long-term economic adjustment that permanent tariffs would cause. And in the short run, monetary policy cannot lean against lower growth and higher inflation at the same time,” the report read.
Meanwhile, the latest report on U.S. retail sales came in weaker than expected. Tozser said consumers and businesses alike are more cautious right now amid the economic uncertainty.
Earnings season continued on both sides of the border Friday, with some Canadian companies including Magna Inc. warning about the effects that tariffs would have.
The Canadian dollar traded for 70.59 cents US compared with 70.21 cents US on Thursday.
The April crude oil contract was down 43 cents at US$70.71 per barrel and the March natural gas contract was up 10 cents at US$3.73 per mmBTU.
The April gold contract was down US$44.70 at US$2,900.70 an ounce and the March copper contract was down 11 cents at US$4.66 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Feb. 14, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
