TORONTO – Canada’s main stock index was down almost 100 points Friday, as industrials, base metals and telecom led the way lower, while U.S. markets were up, recovering losses from earlier in the day.
The S&P/TSX composite index closed down 91.75 points at 24,968.49.
In New York, markets started the day in the red but steadily rose to break a four-week losing streak. The Dow Jones industrial average was up 32.03 points at 41,985.35. The S&P 500 index was up 4.67 points at 5,667.56, while the Nasdaq composite was up 92.42 points at 17,784.05.
“It seems that the markets are calming down quite a bit relative to last week,” said Ian Chong, portfolio manager for First Avenue Investment Counsel Inc.
Markets reacted to U.S. President Donald Trump’s tariffs earlier this month — and the subsequent exemptions, new tariff announcements and threats — by swinging dramatically on a daily basis.
But with no major tariff announcements this week, markets may be in a consolidation phase, said Chong, at least until the end of the month. The next tariff deadline is April 2.
Wednesday saw the U.S. Federal Reserve keep its key interest rate steady, a widely expected decision. The central bank also kept its forecast for two interest rate cuts in 2025 unchanged.
Chairman Jerome Powell said the tariffs will likely stall the progress the Fed has made on inflation, but he said the tariffs could create a one-time increase. The Fed still expects inflation will reach nearly two per cent by the end of next year, he said.
“(Powell) just reassured the investors that the economy is still quite strong and resilient,” said Chong, despite recent weakening in economic data.
“He kind of calmed the investment community that the Fed is prepared to act, although they’re not sure how things will transpire just yet, they’re prepared and in a good place.”
The latest data on retail sales in Canada came in a little weaker than expected, with sales falling 0.6 per cent in January as auto sales moved lower.
The Canadian dollar traded for 69.70 cents US compared with 69.70 cents US on Thursday.
Amid the market volatility, gold has continued to climb after hitting the US$3,000 mark March 14. It’s likely to continue that strength as it’s seen as a safe haven for investors during uncertain times, said Chong.
The May crude oil contract was up 21 cents at US$68.28 per barrel and the April natural gas contract was up half a penny at US$3.98 per mmBTU.
The April gold contract was down US$22.40 at US$3,021.40 an ounce and the May copper contract was essentially unchanged at US$5.11 a pound.
— With files from The Associated Press-
This report by The Canadian Press was first published March 21, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
