Investment update

Weekly insight into the marketplace.

June 2 to June 6, 2025

Stock markets weathered trade-related uncertainty

Chinese accusations that the U.S. had violated a recent trade agreement between the nations weighed on sentiment early Monday, but stock markets bounced back through the rest of the day to close at session highs. The tech-heavy Nasdaq led the major U.S. indexes with a 0.67% gain, the S&P 500 advanced 0.41%, and the Dow added 0.08%. Canada’s TSX rose 0.82%, with support coming from energy stocks as oil prices strengthened. On Tuesday, reports that U.S. President Donald Trump and Chinese President Xi Jinping were planning to speak later in the week to address recent tensions helped investors look past these concerns. The Nasdaq crossed back into positive territory on a year-to-date basis for the first time since February, rising 0.81% on the back of strong performances from chip stocks Broadcom and Nvidia. The Dow and S&P 500 gained 0.51% and 0.58%, respectively. The TSX ticked 0.14% higher led by the energy and utilities sectors – but Tuesday was the last day of its win streak. On Wednesday, the Canadian benchmark lost 0.37% in the wake of the new U.S. tariffs on Canadian steel and aluminum. The major U.S. indexes were mixed, as investors weighed positive corporate earnings against weaker-than-expected economic data. The Dow dipped 0.22%, the S&P 500 was essentially flat after a 0.01% gain, and the Nasdaq added 0.32%. On Thursday, U.S. stock markets fell across the board. The Nasdaq dropped 0.83%, as a 14% plunge in shares of electric vehicle maker Tesla – fueled by concerns over CEO Elon Musk’s escalating public fallout with President Trump – weighed on performance. The S&P 500 lost 0.53%, while the Dow gave up 0.25%. The TSX managed a slight 0.05% gain. The trading week ended with all of the major U.S. stock indexes back in positive territory on a year-to-date basis after better-than-expected employment data for both Canada and the U.S. lifted sentiment. The S&P 500 rose 1.03% and closed above the 6,000 point level for the first time since February. The Dow gained 1.05%, and the Nasdaq climbed 1.20%. The TSX edged up 0.33%.

U.S. tariffs on Canadian steel and aluminum doubled

U.S. President Trump signed an executive order late Tuesday that raised tariffs on steel and aluminum imports to 50%. The order increases the 25% tariff first applied to Canadian steel and aluminum on March 12, to which Canada responded with counter tariffs on $29.8 billion of U.S. goods. Canada is the United States’ largest steel supplier, accounting for approximately a quarter of all its imports in 2023. A statement by Canadian Steel Producer’s Association CEO Catherine Cobden read: “This latest announcement from the Trump administration is a further blow to Canadian steel that will have unrecoverable consequences.” According to Brea Bruske, President of the Canadian Labour Congress, 23,000 steel jobs and another 9,500 aluminum jobs will be impacted “within days.” During Question Period on Wednesday, Prime Minister Mark Carney told the House of Commons: “We are in intensive negotiations with the Americans and in parallel preparing reprisals if those negotiations do not succeed.” A statement from the Prime Minister’s Office earlier in the week noted that all funds collected from Canada’s retaliatory tariffs on U.S. imports will go to supporting Canadian workers and businesses impacted by the U.S. tariffs.

The Bank of Canada held interest rates steady

On Wednesday, Canada’s central bank announced it was holding its policy interest rate at 2.75%. The bank's official statement explained: “With uncertainty about U.S. tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on U.S. trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.”