Investors brace for potential market volatility as trade talks may impact tariffs, supply chains, and economic policies
Global markets showed mixed results Friday, with US stocks ending a subdued week while Canada’s main index advanced. Investors focused on economic data and anticipated high-level trade discussions between US and Chinese officials scheduled for Saturday in Switzerland.
In the United States, BNN Bloomberg reported that the S&P 500 slipped 0.1%, ending the week down 0.5%. The Dow Jones Industrial Average fell 119 points, or 0.3%, while the Nasdaq composite gained less than 0.1%.
This was the first time in seven weeks that the S&P 500 moved by less than 1.5%, as investors balanced concerns about trade policies and potential economic effects, according to BNN Bloomber.
Meanwhile, Canada’s S&P/TSX composite climbed 103.68 points to close at 25,357.74, supported by gains in telecom and energy stocks. Despite the increase, market sentiment remained cautious amid ongoing discussions on global trade policies and domestic economic indicators.
David Ferreira, a portfolio manager at Harbourfront Wealth Management, told BNN Bloomberg that investors were weighing economic data and central bank policies amid prevailing uncertainty.
“Canada’s been in a good spot the last couple of weeks, but I think there’s still some cautious tone across the market,” said Ferreira. “If the US continues to hold (its interest rate) and we continue to cut, it could put pressure on the dollar."
The focus for many investors remained the upcoming US-China trade talks, the first since the two countries began their escalating trade dispute.
President Donald Trump proposed lowering tariffs on Chinese goods from 145% to 80%, leaving the final decision to Treasury Secretary Scott Bessent. BNN Bloomberg reported that the tariff proposal briefly impacted US stock futures before markets stabilized as traders awaited the meeting’s outcome.
Economic updates also drew attention. US Federal Reserve chair Jerome Powell maintained the central bank’s interest rate for the third consecutive meeting, citing risks of inflation and unemployment.
In Canada, the national unemployment rate rose to 6.9% in April, even as 7,400 jobs were added. The Canadian dollar traded at 71.80 cents US, slightly down from the previous day’s 71.91 cents.
Earnings and Commodities
Corporate earnings reports influenced individual stocks.
US travel companies struggled, with Expedia down 7.3% due to weaker demand and Sweetgreen dropping 16.2% following a larger-than-expected loss. Lyft gained 28.1% after reporting record weekly ridership in late March, while Insulet rose 20.9% after delivering strong quarterly results. Taiwan Semiconductor Manufacturing reported a 48.1% rise in April revenue, pushing its US-traded shares up 0.7%.
Commodity prices saw upward movement, with June crude oil rising $1.11 to $61.02 per barrel, and natural gas increasing 20 cents to $3.80 per mmBTU. Gold added $38 to $3,344 per ounce, while copper gained five cents to $4.65 per pound.
BNN Bloomberg also reported that global markets were mixed. Hong Kong’s index rose 0.4%, while Shanghai’s slipped 0.3%. China’s exports grew 8.1% in April, but shipments to the US dropped more than 20% amid ongoing tariff disputes. European markets posted modest gains at the close of the week.
As US and Chinese officials prepare to discuss trade issues, markets remain cautious, with investors balancing hopes for resolution against persistent economic uncertainties.
