TORONTO – Canada’s major stock index fell nearly 100 points on Friday. Industrialists, basic metals and communications were on track, and the US market rose and recovered losses earlier in the day.
The S&P/TSX Composite Index closed 91.75 points at 24,968.49.
In New York, the market began its day in red, but steadily rose to beat its four-week winning streak. The Dow Jones industrial average rose 32.03 points to 41,985.35. The S&P 500 index rose 4.67 points to 5,667.56, while the Nasdaq Composite rose 92.42 points to 17,784.05.
“The market seems to be pretty calm compared to last week,” said Ian Chong, portfolio manager at First Avenue Investment Counsel Inc.
The market responded to President Donald Trump’s tariffs earlier this month and the announcement and threat of subsequent exemptions, new tariffs, and the threats that pose a dramatic daily.
However, with no major tariff announcements this week, the market could be in the consolidation phase, according to Chong, at least until the end of the month. The next customs deadline is April 2nd.
On Wednesday, the US Federal Reserve stabilized key interest rates and made the widely anticipated decision. The central bank also did not change its forecast for the two interest rate cuts in 2025.
Chairman Jerome Powell said tariffs are likely to hinder the Fed’s progress on inflation, but he said tariffs could lead to a one-off increase. He said the Fed expects inflation to reach nearly 2% by the end of next year.
“(Powell) has reassured investors that the economy is still very strong and resilient,” Chong said despite the recent weakening of economic data.
“He has calmed the investment community that the Fed is ready to act, but they still don’t know how things will happen, but they’re ready and in a good place.”
The latest data on Canadian retail sales was a little weaker than expected, with sales down 0.6% in January as car sales fell.
The Canadian dollar traded at 69.70 cents compared to 69.70 cents on Thursday.
Among the market volatility, gold continues to rise after reaching the US$3,000 mark on March 14th. It is likely to continue its strength, as it is considered a safe haven for investors during uncertain times, Chong said.
Crude oil contracts in May increased by 21 cents to US$68.28 per barrel, while natural gas contracts in April increased by half penny at US$3.98 per mmbtu.
The April gold contract was 1 ounce at USD 22.40 for USD 3,021.40, and the May copper contract was essentially unchanged at USD 5.11.
– Files from Associated Press –
The report, which was first published on March 21, 2025, by Canadian report.
Company of this story: (TSX: GSPTSE, TSX: CADUSD)
Rosa Saba, Canadian media
