S&P 500 pulls back from record high as chip-led slump in tech weighs
Investing.com - Canada’s main stock exchange rose ever-so-slightly on Friday, pointing to an extension in recent gains that have been fueled by signs of easing global trade tensions.
By 12:25 ET, the S&P/TSX 60 index had increased by 2 points, or 0.1%.
The Toronto Stock Exchange’s S&P/TSX composite index rose by 41.9 points or 0.2%. This follows a jump of 205.03 points, or 0.8%, on Thursday, surging past a record high last registered on January 30.
Underpinning sentiment has been a string of investment deals announced by U.S. President Donald Trump during a Gulf visit, as well as cooler U.S. inflation data and a trade truce between the U.S. and China.
On Thursday, Ontario announced a 2025 budget that marks one of its most ambitious efforts to shield the province from growing cross-border trade uncertainty, laying out over $30 billion in tariff-related measures while projecting a widened deficit of $14.6 billion. At the center of the budget is a sweeping suite of manufacturing and business programs, including a $5 billion Protecting Ontario Account for distressed sectors and an enhanced Ontario Made Manufacturing Investment Tax Credit worth $1.3 billion over three years.
Statistics Canada issued data showing that Canadian investors acquired $15.6 billion worth of foreign securities in March, most of it in U.S. bonds, while foreign investors pulled $4.2 billion from Canadian markets. This trend holds deeper significance as it may reflect growing investor caution toward Canadian markets amid heightened trade and policy uncertainty.
U.S. stocks inch higher
U.S. stock indexes edged higher in subdued trading Friday evening, steadying after a mixed session on Wall Street as middling economic data spurred bets on more interest rate cuts this year.
By 12:30 ET, the Dow Jones Industrial Average had risen by 118.2 points, or 0.3%, the S&P 500 had gained 17.2 points, or 0.3%, and the NASDAQ Composite had increased by 37 points, or 0.2%.
The Wall Street averages have made a strong comeback, supported by U.S. and Chinese officials agreeing on a 90-day truce in their tariff measures at the start of the week, which eased investors’ fears of escalating global trade tensions and rising risk to the economy.
Barclays (LON:BARC) no longer sees U.S. recession
The trade agreement between Washington and Beijing has prompted Barclays to upwardly revise its U.S. growth forecasts, predicting that the world’s largest economy will not slip into a recession later this year.
It now expects the U.S. economy to grow 0.5% this year and 1.6% next year, , the bank said in a note released late Thursday, up from previous forecasts of -0.3% and 1.5%, respectively.
Still, U.S. data released on Thursday showed soft retail sales as well as producer prices unexpectedly falling in April. The PPI figures came on the heels of a tame consumer price reading earlier in the week, cementing bets that the Fed is likely to cut rates at least twice this year.
The economic calendar is set to be relatively light on Friday, with the focus on a preliminary reading of the University of Michigan’s consumer sentiment survey.
Crude on course for weekly gains
Oil prices traded in an upward fashion and were on course for a second consecutive weekly gain.
At 12:30 ET, Brent futures had risen by 1.5% to $65.47 a barrel, and Crude Oil WTI Futures had advanced by 1.6% to $62.60 a barrel.
Both benchmarks are on track for weekly increases of around 1%, largely on a surge earlier in the week after the U.S. and China announced their trade truce. That said, these gains have been capped by the rising prospect of an Iranian nuclear deal, which could see more crude entering the global market.
Gold dips
Gold prices fell and were on pace to register steep weekly losses as the trade de-escalation between the U.S. and China boosted risk appetite and undermined safe-haven demand for gold.
Traders were seen locking in steep profits in bullion, as it fell sharply from recent record highs. The yellow metal was also pressured by strength in the dollar this week, as well as rising U.S. Treasury yields.
Spot gold fell 1.7% to $3,183.44 an ounce, while gold futures for June dropped 1.2% to $3,186.91/oz by 12:30 ET. Spot prices were trading down about 3.2% for the week, their worst drop since early-November 2024.
(Scott Kanowsky also contributed to this article)