Energy, Telecom and Tech Weigh on S&P/TSX Composite as U.S. Stocks Experience Mixed Results

Rosa Saba, The Canadian Press

TORONTO — On Thursday, Canada's primary stock index experienced a downturn, primarily due to losses in the energy, telecom, and technology sectors. Meanwhile, U.S. markets showed mixed results. The ongoing market volatility is largely attributed to uncertainty surrounding possible tariffs, according to Mike Archibald, vice-president and portfolio manager at AGF Investments Inc.

The S&P/TSX composite index concluded the day down 35.35 points, settling at 25,534.49. In comparison, U.S. markets had varied performances; the Dow Jones industrial average fell by 125.65 points to 44,747.63. In contrast, the S&P 500 index rose by 22.09 points, reaching 6,083.57, while the Nasdaq composite experienced an uptick of 99.66 points, closing at 19,791.99.

This week has seen several disappointing earnings reports, which have influenced market sentiment, although Archibald noted that overall earnings reports have been decent. For example, Ford's stock plummeted by 7.5 percent after disappointing financial projections, indicating investor concern.

In Canada, several companies faced significant declines, including Colliers, El Dorado, Bombardier, and Lightspeed. Specifically, Lightspeed shares dropped 12.9 percent after the conclusion of a strategic review without a take-private deal, and Bombardier's stock fell by 5.7 percent as the company refrained from providing its forecast due to the looming tariff concerns.

Investor caution was evident, especially with Amazon set to release its earnings report later in the day, adding further tension to the market.

Looking ahead, the latest data on the U.S. jobs market will be released on Friday, a crucial element in determining the Federal Reserve's approach to interest rate policies. Archibald explained that if the job numbers turn out to be unexpectedly strong, it could dampen expectations for potential interest rate cuts, which some market participants have priced in.

As for the Canadian economy, Archibald remarked that it remains in stark contrast to the U.S. He noted that while interest rates in Canada have been decreasing, unemployment rates are gradually increasing, indicating economic challenges.

The Canadian dollar traded at 69.82 cents U.S., a slight decrease from Wednesday’s 69.95 cents U.S. In commodity markets, the March crude oil contract fell by 42 cents, settling at US$70.61 per barrel, while the March natural gas contract increased by five cents, reaching US$3.41 per mmBTU. Additionally, the April gold contract saw a decrease of US$16.30, closing at US$2,876.70 per ounce, but the March copper contract rose by two cents to US$4.46 per pound.

— With files from The Associated Press

Stocks, Market, Economy