S&P/TSX composite down as tech and base metal stocks fall, U.S. stocks also lower

TMX Broadcast Centre is pictured in Toronto on May 16, 2011. THE CANADIAN PRESS/Frank Gunn

TORONTO — Canada’s main stock index moved lower on Wednesday, weighed down by losses in the technology and base metal sectors, while U.S. stocks also dropped.

The “sobering” day for the market was led by a fall of AI stocks, and reflects a volatile cycle that will likely last through the year, said Stephen Duench, vice-president and portfolio manager for AGF Investments Inc.

“The markets are obviously reminding us that they are fairly rotational,” he said, pointing to the three positive days in a row leading up to Wednesday.

“I do think today’s just maybe a bit more of a breather of what we’ve experienced in the markets recently.”

The S&P/TSX composite index was down 178.45 points at 25,161.06.

In New York, the Dow Jones industrial average was down 132.71 points at 42,454.79. The S&P 500 index was down 64.45 points at 5,712.20, while the Nasdaq composite was down 372.84 points at 17,899.02.

Investors were also awaiting news expected after markets closed, when U.S. President Donald Trump on Wednesday was set to announce tariffs on auto imports. The announcement went ahead, with Trump unveiling 25 per cent tariffs on all auto imports.

But the pending announcement likely wasn’t the main factor moving the market lower, said Duench, noting tariff-exposed stocks in the auto sector such as Magna International and Bombardier Inc. performed better than expected on the day.

“I don’t think you can draw a straight line with it,” he said, adding those stocks are likely already pricing in negativity.

“In this day and age, in this market, you could almost create a cornucopia of headlines that might spook the market, so it probably is additive to the risk-off tone, but I wouldn’t say ... it’s the driving force of today.”

All eyes in the coming days will be on the next wave of tariff announcements south of the border. Trump has promised to impose “reciprocal” tariffs, which would apply to goods from countries that have tariffs on U.S. goods, starting April 2.

Duench said it seems the market is anticipating those levies may not be as punishing as initially warned. If so, he said to expect “a little bit more relief around the tariff-exposed stocks.”

“But that could change quite quickly, like if for some reason they refute that they’re maybe taking it a bit easier on the tariffs, or they come and try to shock and awe the world with very hawkish tariffs on April 2,” he said.

“I mean, you could see a complete reversal of anything.”

The Canadian dollar traded for 70.09 cents US compared with 69.95 cents US on Tuesday.

The May crude oil contract was up 65 cents US at US$69.65 per barrel and the May natural gas contract was down half a penny at US$3.87 per mmBTU.

The April gold contract was down US$3.40 at US$3,022.50 an ounce and the May copper contract was up three cents US at US$5.24 a pound.

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By Sammy Hudes, The Canadian Press

This report by The Canadian Press was first published March 26, 2025.