Canada’s main index tumbled on Thursday in broad-based declines as U.S. President Donald Trump’s reciprocal tariffs escalated the global trade war and sparked worries of a recession.
The TSX Composite Index sank 849.77 points, or 3.4%, by noon hour EDT Thursday to 24,457.41.
The Canadian dollar gained 0.9 cents to 71.20 cents U.S.
Tech stocks were hit the hardest, with Shopify among the worst performers on the index, down $26.49, or 18.4%, to $117.69.
Trump’s new tariffs announced on Wednesday set a baseline of 10% for all imports and higher duties on some of the biggest trading partners of U.S.
But Canada avoided the new levies as goods that comply with the USMCA trade agreement between the U.S., Mexico, and Canada will largely remain exempt, excluding autos, steel and aluminum which fall under separate tariff policies.
In news economic, Statistics Canada reports that in February, Canada’s merchandise exports decreased 5.5%, while imports were up 0.8%. As a result, Canada’s merchandise trade balance with the world went from a surplus of $3.1 billion in January to a deficit of $1.5 billion in February.
ON BAYSTREET
The TSX Venture Exchange subtracted 17.87 points, or 2.8%, to 613.28
All but two of the 12 TSX subgroups fell midday, with information technology tumbling 9%, energy pounded 5.6%, and health-care off 3.4%.
The two gainers proved to be consumer staples, ahead of the game by 1.2%, while telecoms beat the breakeven point 0.7%.
ON WALLSTREET
Stocks nosedived Thursday sending the S&P 500 back into correction territory, after President Donald Trump unveiled sweeping tariffs of at least 10% and even higher for some countries, raising the risks of a global trade war that hits the already sputtering U.S. economy.
The Dow Jones Industrials stumbled 1,380.85 points, or 3.3%, to stagger into noon hour at 40,844.47.
The much-broader discarded 225.7 points, or 4%, to 5,448.27, putting it on track for its worst day since September 2022
The NASDAQ hurtled lower 898.16 points, or 5.1%, to 16,702.88.
Shares of multinational companies tumbled. Nike fell 12% and Apple dropped 8%. Big sellers of imported goods were among the hardest hit. Five Below lost 29%, Dollar Tree tumbled 8%, and Gap plunged 22%. Tech shares dropped in an overall risk-off mood, with Nvidia off 6% and Tesla down 6%.
The White House unveiled a baseline tariff rate of 10% on all countries that goes into effect on Saturday. Even bigger duties against countries that levy higher rates on the U.S. will be charged in coming days, according to the administration.
Prices for the 10-year Treasury popped, sharply lowering yields to 4.04% from Wednesday’s 4.18%. Treasury prices and yields move in opposite directions.
Oil prices lost $5.39 to $66.32 U.S. a barrel.
Prices for gold swooned $36.40 to $3,129.80 U.S.