TORONTO — Canada's main stock index rose Tuesday, helped by gains in base metal stocks, while U.S. markets were also higher, holding onto the gains from Monday's rally as the next deadline for U.S. tariffs looms in just over a week.
Investors are waiting for clarity and details on what’s coming April 2, as the scope and nature of tariffs from U.S. President Donald Trump keeps shifting, said Kevin Headland, chief investment strategist at Manulife Investment Management.
"We even got some more news over the weekend and coming into this week that perhaps there's going to be more targeted April 2 tariffs, still room for negotiations, so there's still a lot of uncertainty there," said Headland.
That's why the market has been "bouncing around," he said.
The S&P/TSX composite index closed up 35.40 points at 25,339.51.
All the uncertainty has had markets zigzagging on a daily basis in recent weeks, with the major indexes recovering some of what they lost in the initial reaction to tariffs being enacted.
But after the “yo-yo effect” of the past few weeks amid a steady stream of tariff announcements, threats and rumours, markets appear to be in a “wait and see period,” said Headland.
The latest report on U.S. consumer confidence came in weaker than expected, especially for the short term, showing how the uncertainty over tariffs is affecting Americans.
“There’s been a material shift in sentiment,” said Headland, after starting 2025 with strong economic data coming off the worst of the inflation fight.
“I feel like the pendulum has swung completely to the opposite side ... and I think that’s feeding through to some of the market performance here.”
Recent economic data in the U.S. has been coming in on the weaker side, noted Headland.
Canada started the year on a weaker note, and stands to take a hit to economic growth from tariffs even as they threaten to pull inflation higher.
In New York, the Dow Jones industrial average was up 4.18 points at 42,587.50. The S&P 500 index was up 9.08 points at 5,776.65, while the Nasdaq composite was up 83.26 points at 18,271.86.
The Canadian dollar traded for 69.95 cents US compared with 69.84 cents US on Monday.
The May crude oil contract was down 11 cents US at US$69 per barrel and the May natural gas contract was down eight cents US at US$3.88 per mmBTU.
The April gold contract was up US$10.30 at US$3,025.90 an ounce and the May copper contract was up 12 cents US at US$5.21 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published March 25, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press
