TORONTO – Canada’s main stock index rose Tuesday, with strength in financial, industrial and utilities names outweighing weakness in energy as the price of oil fell below US$70 per barrel.
Meanwhile, U.S. markets were mixed as the Nasdaq fell 1.4 per cent, down 260.54 points at 19,026.39.
The Dow Jones industrial average was up 159.95 points at 43,621.16, while the S&P 500 index was down 28.00 points at 5,955.25.
The S&P/TSX composite index closed up 52.72 points at 25,203.98.
A new report on U.S. consumer confidence appeared to rattle the market, as concerns over the economy build, said Greg Taylor, chief investment officer at Purpose Investments.
“This is starting to just change a bit of the narrative that we’ve had,” he said.
The market is back to pricing in two interest rate cuts from the U.S. Federal Reserve this year instead of one as a result, said Taylor.
“I think we’re starting to get a bit of a reset, that the U.S. economy is not firing on all cylinders, and there are some patches of weakness, and I think that’s really what’s catching up to the market these days.”
Consumer confidence in Canada is also down amid fears about U.S. tariffs, the Conference Board of Canada said.
There’s some nervousness in the sector around Nvidia, which is set to report earnings after the bell Wednesday, said Taylor. Investors are worried about what new competitor DeepSeek could mean for artificial intelligence, and about spending from companies like Microsoft.
The semiconductor giant’s earnings reports are as big to market watchers these days as an interest rate decision, said Taylor.
“I think that’s why we’re seeing the Nasdaq down,” he said, while the Dow and the TSX are faring better amid some rotation to more cyclical stocks.
But if the earnings report is good, Nvidia could “save the month,” he said.
There’s also the looming deadline for U.S. tariffs on Canadian goods coming next week, said Taylor.
Canadian bank earnings kicked off this week with Scotiabank on Tuesday. The banks said uncertainty around tariffs is putting a chill on borrowing and business activity, though both still beat expectations with their reports.
The banks increased their provisions for credit losses a little more than expected, in particular Scotiabank, “as they are starting to see a little more caution,” said Taylor.
“What we are seeing, though, so far out of these two banks, is a continuation of the theme that we got out of the U.S., which is strength in capital markets, strength in wealth, and that’s really going to play out well to the banks that do have more exposure to capital markets,” he said.
The Canadian dollar traded for 69.99 cents US compared with 70.30 cents US on Monday.
The April crude oil contract was down US$1.77 at US$68.93 per barrel and the April natural gas contract was up 15 cents at US$4.13 per mmBTU.
The April gold contract was down US$44.40 at US$2,918.80 an ounce and the May copper contract was down three cents at US$4.53 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Feb. 25, 2025.
Companies in this story: (TSX: GSPTSE, TSX: CADUSD)
