Feb 19, 2025 (Baystreet.ca via COMTEX) --
Canada's main stock index opened lower on Wednesday as investors assessed U.S. President Donald Trump's threat of tariffs on automobiles, ahead of the release of minutes from the Federal Reserve's January meeting.
The TSX Composite Index sank 188.1 points to kick off Wednesday at 25,460.74.
The Canadian dollar erased 0.08 cents to 70.38 cents U.S.
The minutes from the Fed's policy meeting are set for release at 2 p.m. ET. The central bank had opted to leave interest rates unchanged at the meeting, with Chair Jerome Powell indicating that they would only cut the rates if inflation and employment data warranted such action.
On Tuesday, Trump said he intends to impose auto tariffs "in the neighborhood of 25%," along with similar duties on semiconductor and pharmaceutical imports.
In corporate news, Loblaw on Wednesday said it plans to invest $2.2 billion to renovate existing stores, open new ones and create about 8,000 jobs this year. Loblaw shares handed back 98 cents to $178.10.
ON BAYSTREET
The TSX Venture Exchange dipped 1.77 points to 640.13.
All but one of the 12 subgroups were lower in the first hour, with information technology staggering 1.5%, while materials and financials each fell 0.9%.
Only energy stood out amid the gloom, gaining 0.6%.
ON WALLSTREET
Stocks fell slightly on Wednesday after a record-setting session for Wall Street.
The Dow Jones Industrials stumbled 136.27 points to 44,420.07
The S&P 500 index lost 9.65 points to 6,119.93
The tech-heavy NASDAQ removed 61.7 points to 19,979.86.
Home Depot and Sherwin-Williams led the Dow declines, dropping about 1% each. Materials were the worst-performing sector in the S&P 500, losing 1%. The S&P 500 energy sector bucked the trend with a gain of 1.4%.
The broad market index on Tuesday climbed to an all-time high, even as concerns around sticky inflation and President Donald Trump's trade policies persist. The benchmark hit an intraday record of 6,129.63 and earned a record close at 6,129.58.
Trump Tuesday floated the notion of imposing a 25% tariff on imported autos, chips and pharmaceuticals. Trump did not specify whether or not the potential duties would be targeted or broad, but did say they could be implemented as soon as April 2.
Prices for the 10-year Treasury gained ground, lowering yields to 4.54% from Tuesday's 4.55%. Treasury prices and yields move in opposite directions.
Oil prices progressed 98 cents to $72.93 U.S. a barrel.
Prices for gold moved up two dollars an ounce to $2,951 U.S.
COMTEX_462929931/2559/2025-02-19T10:42:50
