Investment update

Weekly insight into the marketplace.

July 21 to July 25, 2025

Stock markets climbed higher

On Monday, the S&P 500 rose 0.14% to close above the 6,300-point level for the first time. The Nasdaq advanced 0.38% on its way to its own closing record, lifted by corporate earnings reports that beat expectations. The Dow and TSX were essentially flat, as investors looked for signs of progress in trade negotiations between the U.S. and its key trading partners, including Canada. The major U.S. indexes remained mixed on Tuesday, with the S&P 500 edging further into record territory with a 0.06% gain, and the Dow climbing 0.40%. The tech-heavy Nasdaq gave back 0.39% amid a pullback in shares of AI chipmakers, including Nvidia. Canada’s TSX closed 0.17% higher, even though Prime Minister Mark Carney tempered expectations that Canada will be able to reach a trade pact with the U.S. by the August 1 deadline. The major North American stock indexes were positive across the board on Wednesday, following the previous evening’s news that the U.S. had reached trade deals with the Philippines, Indonesia and Japan. On Thursday, the S&P 500 and Nasdaq continued to rise after Google-parent Alphabet’s quarterly earnings report beat expectations. The Dow closed 0.70% lower, following disappointing financial results from IBM. The TSX dipped 0.16%. Friday saw the S&P 500, Nasdaq and TSX finish at all-time highs, and the Dow only 0.25% shy of a first record close for 2025.

U.S.-Japan trade deal raised hope

The market-moving event of the week came late Tuesday when U.S. President Donald Trump announced that a trade deal had been reached between the U.S. and Japan. Under the agreement, U.S. importers will pay 15% reciprocal tariffs on Japanese goods entering America. This includes automobiles and car parts, which gives Japan an advantage over other vehicle-exporting nations that are currently facing 25% levies. The U.S. President said that Japan will invest US$550 billion into the U.S., with America keeping 90% of the profits. On his social media platform, Trump posted: “This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%.” The announcement came on the heels of reports earlier in the evening that the U.S. had reached trade agreements with Indonesia and the Philippines. This raised investor hope that more trade pacts will soon follow.

Canadian first ministers locked arms on trade

Ontario Premier Doug Ford hosted his fellow Canadian premiers and territorial leaders for a three-day summit in Huntsville. The meetings covered a range of topics, including immigration issues and bail reform, but maintaining a united front in response to U.S. President Trump’s tariff threats was front and centre. Prime Minister Mark Carney attended the meetings on Tuesday, where he provided the leaders with an update on the federal government’s negotiations with the Trump administration. When asked by reporters following the meeting if the August 1 deadline for reaching a deal before a wide array of U.S. tariffs kick in on Canadian goods is achievable, Carney said: “That depends. There’s two sides to a deal,” while adding “We’re working on behalf of Canadians, and we will agree a deal if there’s one on the table that is in the best interest of Canadians, just as the United States will look out for the best interests of the U.S.” The premiers expressed confidence in the prime minister, with Nova Scotia Premier Tim Houston shrugging off concern over the looming deadline: “I would be worried that if we constrain ourselves, that we have to get a deal by a certain date, that we maybe have to do some things or give up some things or give up some leverage that we might not otherwise have to if we just focus on getting the best deal.” The premiers, for their part, discussed the removal of inter-provincial trade barriers. Ontario announced trade deals with British Columbia and three territories during the summit, bringing the total number of agreements it has in place with other governments to 10. “With President Trump’s ongoing threats to our economy, there’s never been a more important time to boost internal trade to build a more competitive, resilient and self-reliant economy,” Premier Ford explained.