TSX closes higher as Trump delays tariffs on EU

Investing.com -- Canada’s main stock index closed higher on Tuesday after U.S. President Donald Trump delayed tariffs on the European Union, as, once again, fears of an escalating global trade war were eased.

By the 4:00 ET close, the bellwether S&P/TSX 60 index gained 13.2 points points or 0.9% in trading.

Toronto’s S&P/TSX finished up 195.9 points or 0.75%, mirroring Monday’s results, and furthering a record high.

Scotiabank (TSX:BNS) reported mixed earnings with 9% YoY revenue growth, but declining EPS. The stock was up 1.6% at market close. 

In other news, Hudson’s Bay disclosed that it will terminate more than 8,300 employees and close its stores as of June 1. This comes following the completion of its liquidation sale. 

King Charles III opened Canada’s Parliament today, affirming that the country will remain "strong and free" amid previous threats from U.S. President Donald Trump’s threats of annexation. 

Additionally, Canadian telecom giant Telus Corp (TSX:T) announced an investment of more than C$70 billion over the next five years. The investments are aimed at upgrading the company’s network and operations across Canada, particularly in fibre, 5G, AI, and rural access. 

U.S. stocks rocket

Trading in U.S. stock indexes also finished higher on Tuesday, as investors gauged the tariff news and a durable goods report.

As of the 4:00 ET close, the S&P 500 jumped 118.7 points or 2.1%, the Nasdaq Composite flew up 462 points or 2.5%, and the Dow Jones Industrial Average vaulted higher by 740.6 points or 1.8%.

Wall Street was closed on Monday for Memorial Day. All three major indices fell 2% or more in last week’s trading.

Sentiment received a boost after Trump stated late Sunday that he had agreed to postpone his recently proposed 50% tariffs on goods from the EU to July 9, following a call with EU President Ursula von der Leyen. 

Orders for durable goods–items designed to last three years or more–fell 6.3% last month after a hefty revised 7.6% gain in March, the Commerce Department’s Census Bureau said on Tuesday.

Investors are eyeing NVIDIA’s (NASDAQ:NVDA) earnings, expected Wednesday after market close. The company is seen as the key indicator of the health of the AI and semiconductor sector, and is the second-most-valuable company in the world by market cap.

Crude Oil prices drop

Oil prices slipped in Tuesday’s trading, as investors remained cautious ahead of a key OPEC+ meeting.

By 5:10 ET, WTI Crude was down 0.7%, pricing in at $61.08 a barrel, while Brent Oil dropped 0.03% to $63.70 per barrel.

OPEC+ has been in the process of unwinding output cuts, announcing additions to the market in May and June.

Gold Futures fall on easing fears

Gold traded downward on Tuesday, as investors turned away from the precious metal following Trump’s tariff pause.

At 5:15 ET, Gold Spot dropped 1.2% to $3,300.71/oz, while Gold Futures traded lower by 2%, pricing in at $3,327.30/oz.

(Peter Nurse also contributed to this article)