TORONTO — Canada's main stock index rose more than 100 points Wednesday, boosted by strength in the technology and base metal sectors, while U.S. stock markets muddled to a mixed close.
The market traded higher in the morning before slumping after the latest comments from U.S. President Donald Trump about tariffs.
Trump reiterated some of his tariff threats and sowed confusion over the duties on Canadian and Mexican goods currently set for next week.
The latest tariff headlines “really took this market down a couple of notches,” said Allan Small, senior investment adviser at iA Private Wealth.
The S&P/TSX composite index closed up 124.38 points at 25,328.36.
In New York, the Dow Jones industrial average was down 188.04 points at 43,433.12. The S&P 500 index was up 0.81 points at 5,956.06, while the Nasdaq composite was up 48.88 points at 19,075.26.
Nvidia shares rose 3.7 per cent ahead of the semiconductor’s earnings report after the bell, helping buoy the Nasdaq Wednesday.
It’s been a choppy trading year so far, said Small, after the banner gains made in 2024.
“Whatever January made, February lost, especially for the Nasdaq,” he said.
Nvidia has been leading the charge amid big bets on artificial intelligence technology, and so lots is at stake every time it reports results.
“We're going to find out how much money is going towards AI, how much money is going towards chips,” Small said.
Investors are also listening for any hints as to whether new Chinese AI upstart DeepSeek could pose a threat, he added.
“That's going to set the tone for the markets for tomorrow.”
Small said Nvidia is expected to announce good results, but the outlook given by the company could be softer than previous quarters.
“The question becomes, you know, are they a victim of their own success, and is their outlook going to disappoint the street?” he said.
National Bank was the latest of the Canadian banks to report earnings Wednesday, and saw profits rise in its first quarter.
“Overall numbers for banks here in Canada, just like they were in the U.S., are not disappointing,” said Small.
The Canadian dollar traded for 69.74 cents US compared with 69.99 cents US on Tuesday.
The April crude oil contract was down 31 cents at US$68.62 per barrel and the April natural gas contract was down 17 cents at US$3.96 per mmBTU.
The April gold contract was up US$11.80 at US$2,930.60 an ounce and the May copper contract was up six cents at US$4.59 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Feb. 26, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD
Rosa Saba, The Canadian Press
