TORONTO — Canada's main stock index ticked higher on Tuesday amid strength in the energy sector while U.S. stock markets fell.
The S&P/TSX composite index was up 21.20 points at 24,974.72, also on the back of the materials sector, said Lesley Marks, chief investment officer of equities at Mackenzie Investments, who pointed to a notable increase in the price of gold for the second straight day to start the week.
Meanwhile, she said Canadian investors were digesting “neutral to marginally positive” news out of the White House, where Prime Minister Mark Carney sat down with President Donald Trump for the first time since last week’s federal election.
While Trump didn't provide an indication he might lift any tariffs levied on Canadian goods during the pair’s meeting, the president did seem to signal he was “willing to strike a friendlier relationship” with Carney than he previously had with the latter's predecessor Justin Trudeau, said Marks.
She added Trump also seemed to create “a bit of an off ramp” when it comes to his frequent threat of annexing Canada, as he acknowledged “it takes two to tango” despite his continued wish for Canada to become the 51st state.
It likely also came as a relief that Trump indicated he was only looking for subtle changes to the Canada-United States-Mexico Agreement as negotiations around the trade treaty loom.
Marks said Canadians will be looking to see how those negotiations affect the automotive sector, especially, due to how intertwined the industry is across the Canada-U.S. border.
“I think that was probably an upside surprise coming out of that discussion, despite the fact that President Trump reiterated that Americans didn't need to buy Canadian cars,” said Marks.
“I would expect that volatility should continue to be lower as we start to see more and more information and the expectation that we will see some trade agreements coming between the United States and their major trading partners.”
But U.S. markets moved lower Tuesday amid lingering concern around the economic outlook as a result of tariffs, Marks said, noting companies such as Ford have pulled their guidance for the year.
In New York, the Dow Jones industrial average was down 389.83 points at 40,829.00. The S&P 500 index was down 43.47 points at 5,606.91, while the Nasdaq composite was down 154.58 points at 17,689.66.
“Certain sectors of the U.S. economy are much more tenuous when it comes to giving future guidance as a result of the impact of tariffs,” she said.
“So it's a matter of people still feeling that there is a heightened level of uncertainty around the outlook.”
The U.S. Federal Reserve is expected to keep its key short-term interest rate unchanged when it announces its next decision on Wednesday, despite harsh criticism from Trump and his demand that the Fed reduce borrowing costs.
“But the market will certainly be looking for any indication that there could be a rate cut coming in the next meeting in June,” said Marks.
The Canadian dollar traded for 72.55 cents US compared with 72.40 cents US on Monday.
The June crude oil contract was up US$1.96 at US$59.09 per barrel and the June natural gas contract was down nine cents US at US$3.46 per mmBTU.
The June gold contract was up US$100.50 at US$3,422.80 an ounce and the July copper contract was up eight cents US at US$4.78 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published May 6, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Sammy Hudes, The Canadian Press
