TORONTO — Canadian and U.S. stock markets gained ground on Tuesday, despite a resurgence in trade tensions between the two nations.
“It really shows you that the markets remain constructive and things can be uncomfortable from time to time. The Canadian equity market continues to benefit from strong commodity exposure and improved financial leadership,” said Ashish Utarid, assistant vice-president of investment strategy with IG Wealth Management.
U.S. President Donald Trump signed a series of executive orders on Monday that would impose a 50 per cent tariff on a range of Canadian goods.
“That applies to about $20 billion worth of goods, which is lumber, packaging, textiles, dairy, and cement. That’s only about five per cent of those Canadian exports to the United States. That’s a big number for those sectors, but it’s also a small number relative to the overall trade between the two nations,” Utarid said.
There would be no exemptions for goods compliant with the Canada-U.S.-Mexico trade agreement, which has served as a shield for Canadian exporters in previous rounds of tariffs.
The S&P/TSX composite index was up 408.76 points at 35,369.08. The basic materials sector led the index higher as the August gold contract was up US$60.50 at US$4,076.40 an ounce.
“Gold continues to be that strategic diversifier when you have uncertainty; gold rallies a little bit, but that short-term performance is being constrained by higher bond yields as well and a strong U.S. dollar,” Utarid said.
Meanwhile, oil prices rose amid continued attacks between the United States and Iran.
The September crude oil contract for North American benchmark West Texas Intermediate was up US$1.86 at US$84.34 per barrel. Brent crude oil, the international standard, pared its gain to two per cent and settled at US$91.01.
In New York, the Dow Jones industrial average was up 385.38 points at 52,224.64. The S&P 500 index was up 65.92 points at 7,509.20, while the Nasdaq composite was up 329.13 points at 25,837.21.
AI stocks once again were at the centre of the action in the U.S. market, and they rose for a second straight day after tumbling the week before.
After rocketing higher because of the boom in investment in AI chips and data centres, they’ve come under pressure in recent weeks on worries that they shot too high. Concerns are also weighing that investment in AI may fall off if it doesn’t produce as much profit and productivity as hoped.
Micron Technology jumped 12.2 per cent and added to its 1.9 per cent gain from the day before, coming off its 13.3 per cent drop from last week. Nvidia added two per cent, and they were the two strongest forces lifting the S&P 500.
On Wall Street, several stronger-than-expected profit reports from big U.S. companies helped stocks to strengthen despite the added pressure.
General Motors cruised 4.9 per cent higher after the automaker’s profit and revenue for the latest quarter beat analysts’ expectations and CEO Mary Barra said demand in North America remains strong.
The Canadian dollar traded for 70.95 cents US compared with 71.15 cents US on Monday.
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Daniel Johnson, The Canadian Press
With files from The Associated Press
This report by The Canadian Press was first published July 21, 2026.
