Stocks Wounded by Tariffs

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 971.41 points, or 3.8%, to conclude Thursday to 24,335.77.

The Canadian dollar acquired 66 cents to 70.98 cents U.S.

Tech stocks were hit the hardest, with Shopify among the worst performers on the index, down $27,95, or 19.4%, to $116.23, while Celestica was bombed $20.66, or 17.5%, to 97.27.

Among energy issues, IPCO ditched $2.93, or 13.4%, to $18.91, while Baytex Energy docked 40 cents, or 12.5%, to $2.80.

In the financial field, Brookfield Corp. backed off $6.93, or 8.9%, to $70.93, while Brookfield Asset Management slipped $6.44, or 8.9%, to $66.26.

Consumer staples lifted things up a little, with Loblaw Companies gaining five dollars, or 2.4%, to $209.56, while North West Company took on $1.07, or 2.1%, to $52.08.

In telecoms, BCE prospered 73 cents, or 2.3%, to $31.97, while TELUS grabbed 45 cents, or 2.3%, to $20.50.

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 16.87 points, or 2.7%, to 614.28

All but two of the 12 TSX subgroups fell, with information technology tumbling 9.7%, energy pounded 6.7%, and financials off 3%.

The two gainers proved to be telecoms, up 1.6%, and consumer staples, ahead of the game by 1%.

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% for some countries. The news intensified a recent selloff and raised the risk of a global trade war that hits the already sputtering U.S. economy.

The Dow Jones Industrials stumbled 1,679.39 points, or 4%, to finish a traumatic session at 40,545.93.

The much-broader index discarded 274.45 points, or 4.8%, to 5,396.52, putting it on track for its worst day since September 2022

The NASDAQ dropped 1,050.44 points, or 6%, to 16,550.60.

Shares of multinational companies tumbled. Nike spun out 13% and Apple 10%. Big sellers of imported goods were among the hardest hit. Five Below lost 26%, Dollar Tree tumbled 12%, and Gap plunged 21%. Tech shares dropped in an overall risk-off mood, with Nvidia off 7% and Tesla down 5%.

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 rose sharply, lowering yields to 4.06% from Wednesday’s 4.18%. Treasury prices and yields move in opposite directions.

Oil prices lost $4.98 to $66.73 U.S. a barrel.

Prices for gold swooned $42.60 to $3,123.50 U.S.