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Trade Tensions Rattle Wall Street’s Momentum

After an impressive streak of gains that pushed major U.S. indices to record highs, the stock market faced a sharp reversal as renewed trade tensions triggered investor anxiety. The Dow Jones Industrial Average, S&P 500, and Nasdaq all pulled back in Friday’s session, with financials and industrials leading the retreat. Concerns were reignited after new tariffs targeting tech and manufacturing imports between the U.S. and China surfaced, prompting fears of escalating economic friction. These measures, aimed at protecting domestic industries, were met with criticism from global partners and stoked uncertainty about the broader trade landscape. Analysts note that while earnings remain strong and economic indicators are still resilient, the shadow of protectionism looms large. Investor sentiment, which had been buoyed by dovish monetary policy and solid corporate results, now finds itself caught in geopolitical crosswinds. Many traders are now recalibrating their expectations heading ...
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Markets decline as Fed minutes fail to boost confidence



The stock markets in the U.S. and Canada started the new year with two consecutive sessions of losses, as investors remained cautious about the Federal Reserve’s plans to cut interest rates this year.

The Fed minutes from its December meeting, released on Wednesday, showed that policymakers were increasingly convinced that inflation was under control and that overly restrictive monetary policy could harm the economy. However, the minutes did not provide much clarity on when and how much the Fed would lower rates, disappointing some traders who had hoped for more guidance.

The S&P 500 index fell 0.8%, while the Nasdaq Composite dropped 1.18% and the Dow Jones Industrial Average slid 0.76%. The TSX composite index also ended down 0.3%, extending its pullback from a 19-month high.

Among the sectors, energy was the only bright spot, as oil prices rose sharply due to a disruption at Libya’s top oilfield. Suncor Energy was the top performer on the TSX, gaining 5.9%. On the other hand, materials, consumer discretionary and financials dragged the markets lower, as a stronger U.S. dollar weighed on gold and copper prices and rate-sensitive stocks.

Airline stocks also suffered, as higher oil prices raised concerns about fuel costs. The S&P 1500 passenger airlines index plunged 4%.

Some individual stocks also made headlines, such as First Quantum Minerals, which surged 11% after a report that Barrick Gold was exploring a possible bid for the company. Barrick’s shares, however, fell 2.9%. Citigroup also continued its rally, rising 1.1% to its highest level since mid-August 2022, after a positive analyst report from Wells Fargo.

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