S&P/TSX composite down more than 100 points, U.S. stocks also fall

BNN Bloomberg is Canada’s definitive source for business news dedicated exclusively to helping Canadians invest and build their businesses.

TORONTO — Canada’s main stock index lost more than 100 points Thursday, weighed down by losses in technology and industrials, while U.S. stock markets also fell.

The S&P/TSX composite index closed down 112.08 points at 25,514.08.

In New York, the Dow Jones industrial average fell 450.94 points, or one per cent, at 44,176.65. The S&P 500 index was down 26.63 points at 6,117.52, while the Nasdaq composite was down 93.89 points at 19,962.36.

The main driver Thursday was the earnings report from retail giant Walmart, said Hadiza Djataou, vice-president and portfolio manager of global bonds at Mackenzie Investments.

Walmart’s sales and profit were strong but its projections for 2025 disappointed investors as consumers grapple with inflation and the threat of tariffs. Shares in the retailer fell 6.5 per cent Thursday.

Concern over lower consumption by consumers saw bank and other retail stocks also fall, said Djataou, adding that tariff uncertainty is likely contributing to weaker expectations for consumer spending. Costco fell 2.6 per cent, Target was down two per cent and Amazon fell 1.7 per cent.

“Between the targeted tariffs on Canada and Mexico, the universal tariffs, and all that coming is leading the consumer to be more cautious about spending habits,” she said.

However, Wall St. is also near all-time highs, so some consolidation is to be expected, she added.

Earnings in the U.S. and Canada have been largely good, said Djataou, but recent reports on inflation have come in hotter than expected, raising doubts about interest rate cuts. Tariffs are also widely considered to be inflationary, she said.

Expectations for cuts from the U.S. Federal Reserve have been pared back in recent months. In Canada, more cuts are still expected as the economy has been hit harder by higher rates.

However, the loonie has regained some of its strength against the U.S. dollar after falling below 70 cents US earlier this year, Djataou noted.

With multiple key dates for potential tariffs in the coming weeks, “there’s a lot coming at us,” said Djataou. However, there are other big changes promised by the new administration that could also impact markets, she said, including immigration policy changes and deregulation.

The Canadian dollar traded for 70.48 cents US compared with 70.31 cents US on Wednesday.

The April crude oil contract was up 38 cents at US$72.48 per barrel and the March natural gas contract was down 13 cents at US$4.15 per mmBTU.

The April gold contract was up US$20 at US$2,956.10 an ounce and the March copper contract was up five cents at US$4.61 a pound.

With files from The Associated Press

This report by The Canadian Press was first published Feb. 20, 2025.

Rosa Saba, The Canadian Press