Stocks Jolted by Trump’s Plans for Canada Tariffs: Markets Wrap

(Bloomberg) — Hopes for a quick rebound from the worst bout of market volatility in years were dashed as the specter of a spiraling global trade war pummeled equities while Canada’s dollar was hammered.

Equities pushed lower as President Donald Trump said he was increasing the steel and aluminum tariff on Canadian goods to 50% to retaliate against Ontario’s move to place a levy on electricity sent to the US. The S&P 500 extended its slide from an all-time high to 9.5%. The dollar fell, while the loonie led losses in major currencies.

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Citigroup Inc. strategists downgraded their view on American shares to neutral from overweight, saying their hegemony is on pause, at least for now. The neutral take on US stocks is over the next three to six months, Citi strategists including Dirk Willer wrote in a note, adding that more negative US data prints are expected.

“US exceptionalism is at least pausing” for the coming few months, they wrote. “The news flow from the US economy is likely to undershoot the rest of the world in coming months,” they added.

The S&P 500 fell 1%. The Nasdaq 100 lost 0.6%. The Dow Jones Industrial Average slid 1.4%. 

The yield on 10-year Treasuries was little changed at 4.21%. The Bloomberg Dollar Spot Index fell 0.3%. The loonie dropped 0.2%.

Key events this week:

• Canada rate decision, Wednesday
• US CPI, Wednesday
• Eurozone industrial production, Thursday
• US PPI, initial jobless claims, Thursday
• US University of Michigan consumer sentiment, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 fell 1% as of 11:03 a.m. New York time
• The Nasdaq 100 fell 0.6%
• The Dow Jones Industrial Average fell 1.4%
• The Stoxx Europe 600 fell 1.7%
• The MSCI World Index fell 1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%
• The euro rose 0.8% to $1.0920
• The British pound rose 0.4% to $1.2932
• The Japanese yen was little changed at 147.33 per dollar

Cryptocurrencies

• Bitcoin rose 0.9% to $79,963.6
• Ether rose 0.2% to $1,871.14

Bonds

• The yield on 10-year Treasuries was little changed at 4.21%
• Germany’s 10-year yield advanced four basis points to 2.88%
• Britain’s 10-year yield advanced two basis points to 4.66%

Commodities

• West Texas Intermediate crude rose 0.9% to $66.65 a barrel
• Spot gold rose 1% to $2,916.17 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from John Viljoen, Sujata Rao and Aya Wagatsuma.

©2025 Bloomberg L.P.