TORONTO 鈥� The trading week wound to a close with the Canadian market on an upbeat but cautious swing.
The country's main stock index, the S&P/TSX composite, gained more than 100 points on Friday because of strength in the telecom and energy sectors.
It ended the day up 103.68 points at 25,357.74, while U.S. markets were mixed as investors awaited a U.S.-China meeting on trade set for Saturday.
In New York, the Dow Jones industrial average was down 119.07 points at 41,249.38. The S&P 500 index was down 4.03 points at 5,659.91, while the Nasdaq composite was up 0.78 points at 17,928.92.
Canada's piece of the market signaled optimism but also reflected how carefully companies and investors have taken to dealing with swirling tariff talk and a string of recent economic announcements showing inflation risks loom.
鈥淐anada's been in a good spot the last couple of weeks, but I think there鈥檚 still some cautious tone across the market,鈥� said David Ferreira, a portfolio manager at Harbourfront Wealth Management.
鈥淚nvestors are digesting economic data, central bank updates.鈥�
Those updates include one from U.S. Federal Reserve chair Jerome Powell, who revealed Wednesday that he was keeping the bank's interest rate unchanged for the third straight meeting.
He attributed the decision to the rising risks of higher inflation and higher unemployment and said he would wait for greater clarity about where the economy is headed before making his next move.
Canada鈥檚 next interest rate decision isn't due until June 4, but the Bank of Canada got more economic data on Friday that will help it decide whether to make a move or hold steady on rates.
Statistics Canada said the national unemployment rate edged up to two tenths of a point to 6.9 per cent in April, returning to a recent high seen in November.
While the economy did add 7,400 net new jobs in April, the rising unemployment rate suggests employers were not hiring as quickly as Canada鈥檚 population was growing.
"If the U.S. continues to hold (its interest rate) and we continue to cut, it could put pressure on the dollar," Ferreira said.
The Canadian dollar traded for 71.80 cents US compared with 71.91 cents US on Thursday.
A divergence in approaches between Canada and the U.S. would make imports more expensive and add on to inflationary pressure.
"Export-oriented sectors might be more affected, but consumer discretionary, travel industries feel it as well," Ferreira said.
Some of the hit would also be felt by manufacturing and commodities.
The June crude oil contract was up US$1.11 at US$61.02 per barrel and the June natural gas contract was up 20 cents US at US$3.80 per mmBTU.
The June gold contract was up US$38 at US$3,344 an ounce and the July copper contract was up five cents US at US$4.65 a pound.
This report by The Canadian Press was first published May 9, 2025.
Companies in this story: (TSX: GSPTSE, TSX: CADUSD)
Tara Deschamps, The Canadian Press
