Equity markets rode the wave Tuesday, even as leaders of both Canada and the U.S. traded barbs and tariffs, as the air of mistrust lingered.
The TSX surged 243.51 points to end Tuesday at 36,957.63
The Canadian dollar eked higher 0.05 cents to 72.30 cents U.S.
BMO Financial reported a rise in third-quarter profit on Tuesday, driven by strong performance in its capital markets business.
BMO shares captured $2.06 to $240.69
Bank of Nova Scotia also posted a rise in third-quarter profit, helped by higher interest income.
Scotiabank shares popped $8.70, or 2.7%, to $128.99.
Technology shares were lifted by a gain of $1.33, or 7.1%, $20.09, in Firan Tech Group.
Gold stocks led the parade, with Seabridge Gold bouncing $2.54, or 5.5%, to $48.38, while Southern Cross Gold up 76 cents, or 6.2%, to $12.95.
In materials, Ero Copper leaped $2.52, or 4.7%, to $55.94, while Hudbay Minerals marched $1.53, or 3.7%, to $42.55.
Energy stocks, however, let the side down, as Strathcona Resources fell $1.46, or 3.4%, to $41.38, while BRP Inc. subsided $3.16, or 3.6%, to $85.09.
In the real-estate sector, Colliers International slid $3.61, or 2.4%, to $145.67, while HR REIT dropped 18 cents, or 1.8%, to $10.11.
The results add to a broader rally in bank stocks, which have outperformed the TSX this year. The financial sector hit its highest level in eight years earlier this month.
Focus was also on U.S.-Canada trade tensions after President Donald Trump on Monday threatened to raise U.S. tariffs on all cars, trucks and automotive parts from Canada to 50% starting January 1, 2027 — escalating a trade fight after negotiations collapsed last week.
The deal on the table would have cut the top-line tariff rate on Canadian cars and light-duty trucks to 15% from 25% and the tariffs on aluminum and steel to 25% from 50%.
ON BAYSTREET
The TSX Venture Exchange jumped 17 points, or 1.7%, to 1,010.93.
The 12 TSX subgroups were evenly divided, with gold surging 1.8%, while financials prospered 1.7%, and materials headed higher 1.4%.
The half-dozen laggards were weighed most by energy, sagging 2.3%, consumer discretionary stocks, off 1.6%, and real-estate, trailing Monday’s close by 1%.
ON WALLSTREET
The S&P 500 rose slightly Tuesday, as Treasury yields fell for a second day. A rally in semiconductor stocks lifted the NASDAQ Composite.
The Dow Jones Industrials jumped 160.01 points to conclude Tuesday at 53,577.17.
The much-broader index added 24.34 points to 7,677.20.
The NASDAQ Composite hiked 171.11 points to 26,161.30.
Chip stocks rallied ahead of Nvidia’s results due out after the close on Wednesday. Shares of the Jensen Huang-helmed company were up about 2%, on track to snap a seven-day decline. Advanced Micro Devices climbed 4% and Micron Technology added 2%.
Consumer names were a notable laggard, with shares of Dick’s Sporting Goods plunging more than 29% following disappointing results. The sports equipment retailer is on pace for its worst day on record. Other retailers such as Walmart dipped 1%, while and Target was also under pressure, falling 4%.
Sentiment was hurt by a worse-than-expected consumer confidence reading and a worsening trade conflict between the U.S. and Canada.
Consumer confidence edged lower in August and grew particularly downbeat about the look further down the road. The Conference Board’s Consumer Confidence Index moved to 89.4, down 0.8 points and below the Dow Jones consensus for 90.2.
Canada on Tuesday announced retaliatory tariffs against the United States, with the government saying it will match the 50% levies that President Donald Trump imposed over the weekend “dollar for dollar.”
Prices for the 10-year Treasury strengthened, lowering yields to 4.63% from Monday’s 4.70%. Treasury prices and yields move in opposite directions.
Oil prices skidded $2.99 to $82.02 U.S. a barrel.
Gold prices regained $20.40 to $4,718.20 U.S. an ounce.
