TORONTO — Canada's main stock index gained 1.5 per cent Friday, rallying alongside U.S. markets to end an otherwise grim week for equities, while the price of gold topped US$3,000 an ounce for the first time ever.
It’s been almost two weeks since U.S. President Donald Trump levied tariffs on Canadian and Mexican goods, and what’s followed has been a series of exemptions, delays, new tariffs and threats of more levies to come. Markets have responded negatively and with a heavy dose of volatility, with the S&P 500 touching correction territory as of Thursday.
Market watchers shouldn’t take Friday’s rally as a sign that everything is back on track, said Pierre-Benoît Gauthier, vice-president of investment strategy at IG Wealth Management.
“We are purely moving on from (the) oversold conditions of the week,” he said.
“When you look at your week's return, you won't even notice today's rally.”
The S&P/TSX composite index closed up 350.17 points at 24,553.40.
In New York, the Dow Jones industrial average was up 674.62 points, or 1.7 per cent, at 41,488.19. The S&P 500 index was up 117.42 points, or 2.1 per cent, at 5,638.94, while the Nasdaq composite was up 451.07 points, or 2.6 per cent, at 17,754.09.
Gauthier said it could take months for markets to recover from the past two weeks.
Tariffs will continue to be the “big dark cloud over the market’s head,” he said.
The latest reading on U.S. consumer sentiment showed it sank for a third straight month amid concerns about the future.
“It was a fail on every line,” said Gauthier, but the market brushed the report aside.
In the week ahead, Monday’s retail sales data in the U.S. will be a focal point as investors look for insight into how the consumer is faring, said Gauthier.
Market watchers are looking for any signs that a recession could be on the way, he said.
“The big selloff really started when Donald Trump kind of hinted that we could see economic pain … and this worried the market.”
Gauthier said at this time he doesn’t think a recession is coming.
The U.S. Federal Reserve also has its interest rate decision next week. Unlike the Bank of Canada, it’s not expected to cut. But the speech from chairman Jerome Powell will be closely watched, said Gauthier.
The Canadian dollar traded for 69.50 cents US compared with 69.40 cents US on Thursday.
The past few weeks may have been brutal for stocks, but they’ve been stellar for gold, which crested US$3,000 on Friday. That’s because the commodity is usually seen as a safe haven during uncertain times, and is also facing increased global demand, Gauthier said.
The April crude oil contract was up 63 cents at US$67.18 per barrel and the April natural gas contract was down a penny at US$4.17 per mmBTU.
The April gold contract was up US$9.80 at US$3,001.10 an ounce and the May copper contract was down three cents at US$4.90 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published March 14, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
