Canada’s main stock index staggered out of the gate on Thursday, following the narrow approval of President Donald Trump’s tax reform bill by the US House of Representatives. The TSX recovered some ground by close thanks to financial and tech gains.
Investors reacted to concerns that the newly passed US legislation could significantly increase the national deficit. The yield on the 30-year US Treasury bond rose to its highest level since October 2023 as the bill moved forward to the Senate.
On Wednesday, Canadian Finance Minister François-Philippe Champagne reported a productive meeting with US Treasury Secretary Scott Bessent, noting that both sides were encouraged by the progress being made. This development comes after President Trump and Prime Minister Mark Carney agreed earlier this month to begin formal discussions on redefining bilateral relations.
The Republican-majority House passed a comprehensive tax and spending package that would implement much of Trump’s policy agenda. However, investors expressed concern that the bill could add approximately US$3.8 trillion to the US federal debt, which currently stands at US$36.2 trillion, over the next 10 years.
| TSX | 25,854.01 | +14.84 |  |
| TSXV | 678.55 | -0.13 |  |
| CSE | 119.65 | -0.28 | |
| DJIA | 41,859.09 | -1.35 | |
| NASDAQ | 18,925.74 | +53.09 | |
| S&P 500 | 5,842.04 | -2.57 | |
The Canadian dollar traded for 72.10 cents US compared to 71.89 cents US on Wednesday.
US crude futures traded $0.39 lower at US$61.18 a barrel, and the Brent contract lost $0.53 to US$64.38 a barrel.
The price of gold was down US$19.49 to US$3,294.87.
In world markets, the Nikkei was down 313.11 points to ¥36,985.87, the Hang Seng was down 283.47 points to HK$23,544.31, the FTSE was down 47.20 points to ₤8,739.26, and the DAX was down 123.23 points to €23,999.17.
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