Trump’s Criticism of Fed Shakes Markets
Canada's commodity-heavy main stock index fell on Monday, led by a decline in energy shares, as investors were jittery after U.S. President Donald Trump's criticism of Federal Reserve Chair Jerome Powell.
The TSX Composite Index blundered 273.98 points, or 1.1%, to 23,918.83.
The Canadian dollar added 0.17 cents to 72.39 cents U.S.
The Canadian market tracked a decline in Wall Street's main indexes, as the Trump administration's statement about considering options to fire Powell, a day after the President's criticism, fueled concerns about the central bank's autonomy.
China on Monday accused Washington of abusing tariffs, and its warning to other countries followed a report that U.S. President Donald Trump's administration was pressuring countries to curb trade with the world's second-largest economy.
The Canadian stock market also takes cues from Wall Street, where index futures down after Trump's scathing attack against Federal Reserve Chair Jerome Powell sparked worries about the central bank's independence.
At home, Canada enters the final week of election campaigning before voters head to poll on April 28.
Prime Minister Mark Carney's campaign platform plans released on Saturday include tax cuts and new spending on infrastructure and defence, as he pledges a new economic order that is less reliant on the U.S.
Among sectors, Canadian gold mining companies could get support from the yellow metal hitting record highs, buoyed by safe-haven flows.
Among health-care concerns, pharmaceutical firm Bausch Health fell 61 cents, or 8.6%, to $6.46.
Markets throughout North America were closed Friday for Good Friday.
ON BAYSTREET
The TSX Venture Exchange sagged 3.05 points to 630.78.
All but three of the 12 subgroups were lower by noon EDT, with health-care dwindling 3.6%, information technology down 2.7%, and real-estate off 1.5%.
The three gainers were consumer staples, better by 0.7%, gold, improving 0.5%, and materials, sliding forward 0.1%.
ON WALLSTREET
Stocks fell again on Monday as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, raising questions about the central bank’s independence, while traders received little signs of progress on global trade talks.
The Dow Jones Industrials collapsed 1,043.10 points, or 2.7%, to 38,099.13.
The S&P index slid 148.18 points, or 2.8%, to 5,134.22.
The NASDAQ Composite bumbled 497.81 points, or 3%, to 15,788.63.
The “Magnificent Seven” tech titans traded lower, with Tesla and Nvidia respectively losing 7% and 5%. Amazon shed 4%, while Advanced Micro Devices and Meta Platforms slipped 3%. Equipment manufacturer Caterpillar also declined 3%.
In a Truth Social post, Trump claimed that the economy would slow unless Powell — who he referred to as “Mr. Too Late, a major loser” — lowered interest rates immediately. This follows another post last week in which Trump also called for the Fed to lower rates, even hinting at Powell’s “termination” — something White House economic advisor Kevin Hassett said the president’s team was studying.
Stocks fell to their session lows after Trump’s post on Monday. The dollar was also under pressure, hitting a three-year low as the threats ramped up. Gold, meanwhile, soared to record highs above $3,400 per ounce.
The S&P 500 is down more than 8% since since April 2, when Trump announced a raft of levies on imports from other countries. The NASDAQ has lost nearly 10% in that time, and the Dow has fallen 9%.
Prices for the 10-year Treasury were down Monday, raising yields to 4.37% from Thursday’s 4.33%. Treasury prices and yields in opposite directions.
Oil prices tumbled $1.86 to $62.82 U.S. a barrel.
Prices for gold popped $99.20 to $3,427.60 U.S.
