Stock markets in Canada and the U.S. shot up after U.S. President Donald Trump paused his “reciprocal” tariffs on most nations for 90 days, though he further raised his tax rate on Chinese imports.
The TSX Composite Index went skyward 1,220.13 points, or 5.4%, Wednesday at 22,727.03.
The Canadian dollar regained 0.7 cents to 70.88 cents U.S.
Meanwhile, shares of Canadian gold miners found support from higher bullion prices, as traders sought the safe-haven asset with a weaker dollar and the rising prospect of U.S. rate cuts.
Barrick shares were up $1.55, or 6.2%, to $26.53, while those for Aya gained $1.28, or 13.9%, to $10.47.
Elsewhere, outdoor apparel company Roots gained 11 cents, or 5.1%, to $2.29, after strong fourth-quarter results.
In tech issues, Bitfarms captured 21 cents, or 21.4%, to $1.19, while Celestica jumped $18.83, or 19.3%, to $116.92.
Energy stocks roared ahead, led by Baytex Energy, strengthening 49 cents, or 23.6%, to $2.57, while Vermilion Energy sprang up $1.68, or 21.8%, to $9.40.
In materials, Capstone Mining gained 83 cents, or 15.5%, to $6.20, while Endeavour Silver added 73 cents, or 16.3%, to $5.21.
Telecoms let the side down, as Quebecor faltered 70 cents, or 2%, to $35.08, while BCE gave back 15 cents to $29.62.
ON BAYSTREET
The TSX Venture Exchange gained 36.9 points, or 6.6%, to 598.66.
All but one of the 12 TSX subgroups closed the session in the green, led by information technology, better by 10.4%, while energy surged 9.5%, and materials charged ahead 6.3%.
The lone laggard proved to be telecoms, sliding 0.3%.
ON WALLSTREET
Stocks surged Wednesday after President Donald Trump announced a pause in some of the ‘reciprocal’ tariffs, causing a market that’s been under extreme pressure for the last week to explode higher.
The Dow Jones Industrials popped 2,962.86 points, or 7.9%, to close Wednesday’s trading at 40,608.45, its biggest advance since 2020.
The broader index improved 474,13 points, or 9.5%, to 5,456.40 for its biggest one-day gain in five years
The NASDAQ barreled 1,857.06 points, or 12.2% to 17,124.97, also its biggest one-day hike in decades.
Stocks that were heavily pressured by the trade war tensions led the comeback Wednesday afternoon. Apple leaped more than 11% and Nvidia more than 13%. Walmart shares rallied 9.7%. Tesla shares climbed more than 19% on the back of the pause announcement.
Over the course of the previous four trading sessions, the Dow lost more than 4,500 points, while the S&P 500 sustained a 12% loss. The NASDAQ is down more than 13% in that period.
China announced it will impose an 84% levy on U.S. goods starting Thursday. This comes after U.S. tariffs of 104% on Chinese imports took effect shortly after midnight. The EU also approved its first set of tariffs on the U.S. set to start on April 15.
U.S. tariffs on imports from other countries also took effect. Canada reconfirmed Tuesday plans to put into effect 25% retaliatory tariffs on U.S.-made vehicles.
This includes vehicles that aren’t compliant with the United States-Mexico-Canada Agreement, in addition to non-Canadian and non-Mexican content of USMCA-compliant fully assembled vehicles brought into Canada from the U.S.
Some traders may have been encouraged that Treasury Secretary Scott Bessent said he would be taking a lead negotiating role in tariff talks. Wall Street would favor a bigger role for Bessent over Commerce Secretary Howard Lutnick or trade advisor Peter Navarro.
Prices for the 10-year Treasury lost ground, pushing yields to 4.34% from Tuesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.99 to $62.57 U.S. a barrel.
Prices for gold spiked $121.40 to $3,111.60 U.S.