TORONTO – Canada’s main stock index fell in late-morning trading, weighed down by losses in the utility and financial sectors, while U.S. stock markets climbed higher even as China raised its tariffs on U.S. goods in response to the latest moves by U.S. President Donald Trump.
“Growing concern about the potential impact of tariffs on the world economy has put stocks under pressure again today,” said SIA Wealth Management portfolio manager and chief market strategist Colin Cieszynski in a note Wednesday.
The S&P/TSX composite index was down 41.29 points at 22,465.61.
In New York, the Dow Jones industrial average was up 120.06 points at 37,765.65. The S&P 500 index was up 27.85 points at 5,010.62, while the Nasdaq composite was up 201.64 points at 15,469.55.
Markets have been falling since Trump announced sweeping global tariffs last week that economists warn could lead to a recession.
Stocks rallied Tuesday but switched course partway through the day to end in the fourth day in the red.
“Yesterday’s hopes for some moderation in U.S. tariff policy met the reality of 104 per cent tariffs on China and President Trump’s other levies being imposed as of midnight last night,” Scotiabank strategists Shaun Osborne and Eric Theoret wrote in a note.
Investors are shifting away from U.S. assets over concern about what the tariffs will do to the economy, they wrote.
Analysts have said such volatility will continue as investors digest the impact of tariffs and as headlines on tariffs continue, including the latest escalation by China. The country said it would bring in retaliatory tariffs after Trump’s announcement last week. The president ramped up U.S. tariffs on Chinese goods in response, and now China plans to raise its own retaliatory tariffs again.
The European Union has also approved retaliatory tariffs on U.S. goods, while other countries have shown a willingness to negotiate in the hopes of lowering tariffs on their exports to the U.S.
Amid the uncertainty, “trading in bonds and currencies has been unusual,” said Cieszynski, as investors seek a safe haven in precious metals while U.S. bonds unexpectedly are selling off.
With U.S. earnings season approaching, some companies are pulling guidance for the coming quarter, he noted, including Walmart and Delta Air Lines.
The Canadian dollar traded for 70.53 cents US compared with 70.44 cents US on Tuesday.
The May crude oil contract was down US$3.21 at US$56.37 per barrel and the May natural gas contract was down three cents US at US$3.43 per mmBTU.
The June gold contract was up US$97.70 at US$3,087.90 an ounce and the May copper contract was up seven cents US at US$4.21 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published April 9, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
