S&P/TSX composite up almost 300 points, U.S. stock markets also post gains

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This article was published 22/04/2025 (192 days ago), so information in it may no longer be current.

TORONTO – Canada’s main stock index rose almost 300 points Tuesday on strength in energy, financials and base metals, while U.S. stock markets also climbed.

Stocks rose to recover their losses from Monday in the absence of any major market-moving news, said Ryan Crowther, portfolio manager at ClearBridge Investments.

“After the magnitude of yesterday’s sell-off, there was some room for a recovery,” he said, noting that some of the major tech names saw a bounce. 

In a speech Tuesday, U.S. Treasury Secretary Scott Bessent said he expects a “de-escalation” in the trade war between the country and China, according to a transcript obtained by The Associated Press. Tensions and tariffs between the two ramped up quickly after Trump announced sweeping duties on countries around the world.  

Recent rallies like Tuesday’s have been fragile, said Crowther, because markets are still waiting for more clarity — and are still significantly down on the year.

“It’s tough to envision a sustained rally without more clarity on trade policy,” he said. “So any progress on trade negotiations will serve as welcome news.” 

The S&P/TSX composite index closed up 297.12 points at 24,305.98.

In New York, the Dow Jones industrial average was up 1,016.57 points at 39,186.98. The S&P 500 index was up 129.56 points at 5,287.76, while the Nasdaq composite was up 429.52 points at 16,300.42.

Several companies in the U.S. reported stronger-than-expected earnings Tuesday, though many investors were likely waiting for Tesla’s results scheduled after the bell. The electric car company reported a drop in first-quarter profits of more than two-thirds after markets closed for the day.

The earnings reports likely didn’t have much of an effect on markets Tuesday, said Crowther. As earnings season gets underway, investors will be watching for any forward-looking statements from executives.

For the major tech names in particular, which led market strength last year and heading into 2025 before tariffs pulled the rug out from under investors, the focus will be on looking for sustained earnings growth, said Crowther. 

The Canadian dollar traded for 72.32 cents US compared with 72.36 cents US on Monday.

Amid the ongoing uncertainty, gold continues to rise. 

“Gold firmly established itself in the safe haven category at this point, and (has) rallied almost 30 per cent year to day,” said Crowther.

The June crude oil contract was up US$1.26 at US$63.67 per barrel and the May natural gas contract was down a penny at US$3.01 per mmBTU.

The June gold contract was down US$5.90 at US$3,419.40 an ounce and the May copper contract was up 15 cents at US$4.88 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published April 22, 2025.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)