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TORONTO - Canada's main stock index was down almost 200 points Monday in a broad-based decline after the long weekend, while U.S. stock markets also fell amid ongoing tariff concerns and U.S. President Donald Trump's latest criticism of the head of the Federal Reserve.  

"We actually saw a pretty nice jump on some things last Thursday, and now we're seeing the hangover today," said Michael Currie, senior investment adviser at TD Wealth.

The S&P/TSX composite index closed down 183.95 points at 24,008.86.

In New York, the Dow Jones industrial average was down 971.82 points at 38,170.41. The S&P 500 index was down 124.50 points at 5,158.20, while the Nasdaq composite was down 415.55 points at 15,870.90.

Markets have had a rough couple of weeks as Trump announced aggressive tariffs on countries around the world, strengthening concerns that the duties will lead to inflation and slowing economic growth. Some of those tariffs have been put on pause, but the country's trade war with China has quickly accelerated, with China on Monday warning other countries against making trade deals with the U.S. 

Trump has also been critical of U.S. Federal Reserve chairman Jerome Powell, including comments last week about the central bank not cutting interest rates sooner to help the economy.

The Fed has been cautious in lowering its key rate as the fight against inflation winds down.

Trump went after Powell again on Monday, calling him "a major loser" and "Mr. Too Late," advocating again for lower rates.

Trump’s issues with Powell aren’t new, noted Currie, but his latest rant is adding to the ongoing uncertainty over Trump’s trade policy.

Talks with Japan last week over tariffs failed to reach a deal, but if the two countries are able to find an agreement it would provide some hope to tariff-sensitive investors, he said.

"It's almost like ... if they work out a deal, then a whole bunch of other countries will follow after it," he said. 

The ´ºÉ«Ö±²¥ dollar traded for 72.36 cents US compared with 72.17 cents US on Thursday. The gains had more to do with the weakening U.S. dollar than anything else, said Currie, noting the loonie has been gaining over the past month.

Gold continued to rise Monday, helping the TSX even as most other materials stocks were down in Canada, said Currie.

"That's another indicator the market is saying, sell the economically sensitive (stocks)," he said. "So there's still a lot of nervousness in the market." 

The June crude oil contract was down US$1.60 at US$62.41 per barrel and the May natural gas contract was down 23 cents US US$3.02 per mmBTU.

The June gold contract was up US$96.90 at US$3,425.30 an ounce and the May copper contract was down less a penny at US$4.73 a pound.

— With files from The Associated Press

This report by ´ºÉ«Ö±²¥was first published April 21, 2025.

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