Markets in Toronto tripped out of the gate Monday, as investors digested the fallout from the failure of U.S.-Canada trade talks.
The TSX dipped 21.8 points to open the week at 36,598.43.
The Canadian dollar faded 0.16 cents to 72.34 cents U.S.
The U.S. imposed 50% tariffs on some Canadian goods on Saturday after the two longstanding allies failed to secure a trade agreement, with both sides blaming each other for the collapse of talks.
The new duties add to existing U.S. tariffs on steel, lumber and autos which have taken major hit in the last 18 months. According to trade experts, the tariffs open up some already vulnerable sectors to potential severe damage and could lead to job losses and business closures.
Prime Minister Mark Carney said he had suspended trade negotiations and Canada would retaliate "dollar for dollar" on the new tariffs.
ON BAYSTREET
The TSX Venture Exchange acquired 9.29 points to 997.66.
The 12 TSX subgroups were evenly divided, with gold and materials progressing 1.5%, and telecoms ahead 0.5%.
The half-dozen laggards were weighed most by industrials, retreating 1%, while financials and consumer discretionary each down 0.5%.
ON WALLSTREET
The S&P 500 fell slightly on Monday as a drop in key technology stocks overshadowed a move lower in Treasury yields.
The Dow Jones Industrials zoomed 171.29 points to 53,448.30.
The much-broader index flopped 21.18 points to 7,653.19.
The NASDAQ Composite sank 206.33 points to 25,970.43.
Declines in chip stocks weighed on the broader market. Micron Technology shed more than 6%, while Advanced Micro Devices and Broadcom pulled back 3% and around 2%, respectively.
Other tech stocks fell as well. Coherent and Lumentum dropped more than 7%, while Sandisk dropped 9%. Corning moved down 4%, while Seagate Technology declined 6%.
Treasury yields moved lower after reports that the Treasury may use the General Account to fund a buyback operation. The 10-year Treasury note yield fell 3 basis points to 4.708%. The yield on the 30-year Treasury bond, which topped 5.3% last week to reach levels not seen in nearly 20 years, shed more than 3 basis points to 5.237%.
The report comes after Treasury Secretary Scott Bessent told the media last week that the Treasury Department’s plans to at least double the level of government debt buybacks in the next few months could be larger than the $4 billion that was announced earlier that week.
Prices for the 10-year Treasury strengthened, lowering yields to 4.70% from Friday’s 4.73%. Treasury prices and yields move in opposite directions.
Oil prices skidded $1.31 to $85.75 U.S. a barrel.
Gold prices spiked $51.10 to $4,731.70 U.S. an ounce.
