Equities Jump in First Hour
Canada's main stock index opened higher on Tuesday, recovering from previous session's steep decline, but investor sentiment remains cautious following U.S. President Donald Trump's recent attacks on Federal Reserve Chair Jerome Powell.
The TSX Composite Index screamed higher 292.91 points, or 1.2%, to 24,301.77
The Canadian dollar was flat at 72.24 cents U.S.
The Toronto Stock Exchange fell on Monday, snapping its five-day winning streak, as investors were jittery after U.S. President Donald Trump's scathing attack on Federal Reserve Chair Jerome Powell for not cutting interest rates.
The president called Powell a "major loser" in a social media post on Monday, which raised concerns about the independence of the central bank.
In corporate news, a U.S. appeals court on Monday revived a proposed data privacy class action against Shopify, whose shares began Tuesday up $2.18, or 1.9%, to $115.10.
Economically speaking, Statistics Canada said its March Industrial Product Price Index rose 0.5% month over month in and increased 4.7% year over year.
The same month, its Raw Materials Price Index declined 1.0% month over month in and grew 3.9% year over year.
ON BAYSTREET
The TSX Venture Exchange recovered 6.33 points, or 1%, to 637.25.
All 12 subgroups were higher in the first hour, led by health-care, zooming 3.3%, while energy soared 1.6% and financials were richer 1.5%.
ON WALLSTREET
Stocks rose Tuesday as traders tried to recover following a rough day on Wall Street, as President Donald Trump’s latest criticism of Federal Reserve Chair Jerome Powell hurt sentiment.
The Dow Jones Industrials recovered 696.58 points, or 1.8%, to 38,866.99.
The S&P index climbed 89.69 points, or 1.1%, to 5,247.89
The NASDAQ Composite spiked 315.2 points, or 2%, to 16,186.10
Tesla shares rose 3% ahead of the company’s first-quarter report after the bell. Netflix climbed 4%, while Meta improved 1% and Amazon advanced 2%. Manufacturing conglomerate 3M rose 6% on the back of better-than-expected earnings, leading the blue-chip Dow higher.
Tuesday’s action comes on the heels of a sharp selloff. The Dow dropped more than 970 points in the regular session, while the S&P 500 and NASDAQ both slid more than 2%. Monday marked the fourth straight losing session for the Dow and NASDAQ.
Investors grew increasingly uncertain after Trump posted on Truth Social that the economy would slow if the Fed did not cut interest rates. In the latest of multiple recent posts calling out Powell by name, he called the Fed chief “Mr. Too Late” and a “major loser.”
Trump hinted at Powell’s “termination” last week, an unprecedented action that White House economic advisor Kevin Hassett said the president’s team was currently studying. Powell has said he cannot be fired under law and intends to serve through the end of his term in May 2026.
Prices for the 10-year Treasury regained strength Tuesday, raising yields to 4.39% from Monday’s 4.41%. Treasury prices and yields in opposite directions.
Oil prices forged ahead $1.02 to $64.10 U.S. a barrel.
Prices for gold popped $18.00 to $3,443.30 U.S.
