Toronto Stock Market Down, US Markets Mixed Amid Industrial Stock Losses

The Toronto Stock Exchange (TSX) composite index fell 72.92 points to 27,314.01 on Friday, due to losses in industrial stocks. US stock markets were mixed, with the Dow Jones industrial average down 142.30 points and the S&P 500 index down 0.57 points. The Canadian dollar traded at 72.89 cents US, while the September crude oil contract was down 18 cents US at US$66.05 per barrel. The August gold contract was up US$13 at US$3,358.30 an ounce.

The Toronto Stock Exchange (TSX) composite index fell 72.92 points to 27,314.01 on Friday, driven by losses in industrial stocks. This decline occurred despite a mixed performance in U.S. stock markets. The Dow Jones industrial average was down 142.30 points at 44,342.19, while the S&P 500 index lost 0.57 points at 6,296.79. The Nasdaq composite, however, rose 10.01 points to 20,895.66 [1].

Steve Locke, chief investment officer for fixed income and multi-asset strategies at Mackenzie Investments, attributed the TSX performance to potential consolidation in the U.S. railway industry. Norfolk Southern, which was up 2.5% following reports of merger talks with Union Pacific, may have influenced the TSX market [1]. Meanwhile, Netflix's stock fell 5.1% despite reporting strong profits, while American Express lost 2.3% despite better-than-expected financial results [1].

The Canadian dollar traded at 72.89 cents US, a slight increase from Thursday's rate of 72.71 cents US. This modest rebound was attributed to recent dovish remarks from Federal Reserve Governor Christopher Waller, who suggested a more accommodative stance and potential rate cuts [3]. The September crude oil contract was down 18 cents US at US$66.05 per barrel, while the August gold contract rose US$13 to US$3,358.30 an ounce [4].

The TSX closed down 72.92 points, or 0.27%, at 27,314.01 for the week, despite hitting record highs on Thursday. Industrial shares (.GSPTTIN) fell 1%, with Canadian Pacific Kansas City (CP) dropping 3.6%, the most on the index [2]. Healthcare stocks (TTHC) fell 1.5%, and consumer discretionary stocks (.GSPTTCD) declined 1% [2]. Utility stocks (TTUT) rose, boosted by Capital Power (CPX) and TransAlta Corp (TA) shares adding 2.3% and 1.9%, respectively [2]. Energy stocks (TTEN) climbed 0.1%, with Headwater Exploration (HWX) and Baytex Energy (BTE) rising about 3.8% each [2].

Looking ahead, investors will assess the Bank of Canada's Business Outlook Survey, set for release on Monday, for business expectations amid tariff-related uncertainty. RBC analysts expect early stabilization in businesses’ expectations for future sales, input prices, and hiring in the second quarter [2].

References:
[1] https://ca.finance.yahoo.com/news/p-tsx-composite-down-morning-153311622.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TF1KU:0-tsx-drops-as-industrial-shares-slide-wraps-up-week-higher/
[3] https://www.vtmarkets.com/live-updates/the-canadian-dollar-strengthens-against-the-us-dollar-following-dovish-remarks-from-fed-governor-waller/
[4] https://www.barchart.com/story/news/33391492/crude-oil-prices-tumble-as-trump-remains-patient-with-putin