Canada, U.S. stock markets rally as economic uncertainty persists
Global News
The only prediction many Wall Street strategists are willing to make is that financial markets will continue to jerk up and down as hopes rise and fall over Trump's trade policies.
U.S. stocks are rallying Tuesday after companies reported fatter profits than expected, and other U.S. investments are also steadying a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the Federal Reserve.
The S&P 500 was 2% higher in morning trading and on track to recover most of Monday’s drop. The Dow Jones Industrial Average was up 765 points, or 2%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 2.2% higher.
Canada’s main stock index, the S&P/TSX composite, was up more than 300 points in late-morning trading, helped by gains in the energy and base metal sectors.
The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier. Sharp, unusual moves in those markets have recently raised worries that Trump’s policies are making investors more skeptical that U.S. investments still deserve their reputations as the world’s safest.
The only prediction many Wall Street strategists are willing to make is that financial markets will continue to jerk up and down as hopes rise and fall that Trump may negotiate deals with other countries to lower his tariffs. Otherwise, many investors expect the economy to fall into a recession.
The International Monetary Fund on Tuesday slashed its forecast for global economic growth this year to 2.8%, down from 3.3%. But Vice President JD Vance also said he made progress with India’s prime minister, Narendra Modi, on trade talks Monday.
Some signs of nervousness remain in financial markets. Gold continued to rise, for example, as it holds onto its reputation as a safer investment when fear is dominating markets.
A suite of better-than-expected profit reports from big U.S. companies, meanwhile, drove U.S. stocks higher.
