TORONTO – Canada’s main stock index ticked lower on Wednesday, weighed down by losses in technology and base metals, while U.S. stock markets eked out another gain to reach a new all-time high for the S&P 500.
“It’s a quiet day on the market,” said Anish Chopra, managing director with Portfolio Management Corp.
Investors are digesting the recent weeks’ news on inflation, earnings and the non-stop announcements from new U.S. President Donald Trump, said Chopra.
“The market’s kind of just absorbing the news and looking forward,” he said.
The S&P/TSX composite index closed down 22.68 points at 25,626.16.
In New York, the Dow Jones industrial average was up 71.25 points at 44,627.59. The S&P 500 index was up 14.57 points at 6,144.15, while the Nasdaq composite was up 14.99 points at 20,056.25.
The next hurdle on investors’ minds is inflation in the U.S., which has remained stubborn in recent readings, said Chopra.
The latest report on U.S. inflation came in hotter than expected at three per cent, compared with 2.9 per cent the previous month.
Inflation is also on the U.S. Federal Reserve’s mind, as shown by the minutes released Wednesday from the central bank’s last interest rate decision.
In discussions ahead of deciding to pause interest rates in January, officials said Trump’s proposed tariffs and other factors could push inflation higher in 2025. They said they wanted to see more progress on inflation before cutting rates again.
Markets are currently pricing in almost zero chance that the Fed will cut rates at its next two meetings in March and May.
Trump has threatened sweeping, high tariffs on a wide variety of goods including everything from Canada, but it remains to be seen whether the tariffs will actually be implemented.
Despite the uncertainty, however, U.S. markets are hovering around all-time highs.
“The U.S. is doing quite strongly, especially if you compare it to Canada, where … GDP growth has stalled,” said Chopra.
He said despite all the volatility from Trump’s various announcements, his administration is seen as potentially benefiting corporations and the economy in certain ways such as through tax reductions.
The Canadian dollar traded for 70.31 cents US compared with 70.46 cents US on Tuesday.
The April crude oil contract was up 27 cents at US$72.10 per barrel and the March natural gas contract was up 27 cents at US$4.28 per mmBTU.
The April gold contract was down US$12.90 at US$2,936.10 an ounce and the March copper contract was down three cents at US$4.56 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Feb. 19, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
