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Markets Digest Hot U.S. Inflation as Iran Tensions Keep Oil Elevated

Publication:  moneysavings.ca / Canadian Money Brief  Date:  Tuesday, May 13, 2026 The TSX opens cautiously Wednesday after hotter-than-expected U.S. CPI data rattled Wall Street on Tuesday, while Strait of Hormuz disruptions continue to lift energy stocks and pressure the loonie toward 1.35 against the greenback. TSX ~34,291 S&P 500 7,400.96 ▼0.16% WTI Oil ~$102/bbl ▲ Gold ~$4,721 USD/oz ▼ USD/CAD ~1.35 US CPI Apr 3.8% ▲ (est. 3.7%) Market Overview Canadian investors are starting Wednesday on a cautious note following a mixed session south of the border. U.S. equities dipped Tuesday after April's consumer price index came in at 3.8% — a touch above the 3.7% consensus forecast and the highest reading since May 2023 — while the core rate held at 2.8%, also above expectations. The data has effectively closed the door on any Federal Reserve rate cuts in 2026, with traders now pricing in a roughly 70% chance of a rate hike by April 2027. For Canadians, the ripple effects...

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Tariff Tensions Trigger Market Slide as Trump Reaffirms 'America First' Trade Policy

                                               

U.S. stock indexes stumbled on Friday as confirmation came that President Donald Trump will implement sweeping tariffs on imports from Canada, Mexico, and China starting this Saturday. Major indices reflected growing investor caution ahead of the new trade measures.

According to reports, the Dow Jones Industrial Average fell by 337 points to close at roughly 44,545, while the S&P 500 dropped about 31 points to finish near 6,041. The technology-heavy Nasdaq also recorded a decline of over 54 points, ending the session at around 19,627. The selloff came after the White House reiterated Trump’s commitment to a robust “America First” policy that aims to protect domestic industries by raising the cost of imported goods citeturn0search15.

Earlier in the day, markets had been trading higher as investors digested an inflation report in line with expectations. However, as details emerged confirming the tariffs’ imminent implementation, uncertainty about their potential impact on prices and global supply chains triggered a sharp pullback in sentiment.

Market analysts warn that the tariffs could lead to higher consumer prices and disrupt trade flows, adding to inflationary pressures at a time when economic growth remains fragile. The renewed emphasis on protectionist measures has intensified debates over the balance between domestic job creation and the broader implications for the global trading system.

Investors now face the challenge of navigating a volatile environment as the tariff threat looms over the weekend, with many eyeing key economic indicators in the coming days for signs of how the new policies might ultimately affect market performance.

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