Canada’s main stock index plunged over 300 points at the start of the trading week on Monday. Traders are avoiding risks due to ongoing concerns about the global trade war. Former central banker Mark Carney emerged victorious in the Liberal Party leadership race and will succeed Justin Trudeau as Prime Minister, according to official results released on Sunday. Carney, a newcomer to politics, claimed he was the best candidate to rejuvenate the party and manage trade negotiations with President Donald Trump, who threatened additional tariffs on Friday. Investors are also focusing on the Bank of Canada’s meeting this week, where the central bank is expected to reduce interest rates by 25 basis points. The tech sector led the steep drop on the TSX while telecom and utilities shares supported the gains.
US markets also declined as last week’s selling pressures continued, with investors fearing an economic slowdown after Trump did not rule out a recession due to US tariffs. The concerns affecting Wall Street have been particularly detrimental to some of its biggest names. Major tech stocks and companies that benefited from the artificial intelligence boom in recent years have seen significant drops. A California judge recently denied Elon Musk’s request to halt OpenAI’s transition to a for-profit model, allowing the case to proceed to trial later this year. Tesla’s (NASDAQ:TSLA) stock fell more than 15 per cent, deepening its 2025 losses to nearly 45 per cent.
Hong Kong stocks also dropped, pushing the benchmark below 24,000 points as investors worried about deflation following China’s report of a decline in consumer prices.
| TSX | 24,380.71 | -378.05 |  |
| TSXV | 594.74 | -19.56 | |
| CSE | 121.52 | -5.20 | |
| DJIA | 41,911.71 | -890.01 | |
| NASDAQ | 19,430.95 | -770.42 | |
| S&P 500 | 5,614.56 | -155.64 | |
The Canadian dollar traded for 69.25 cents US compared to 69.57 cents US on Friday.
US crude futures traded US$1.08 lower at US$65.96 a barrel, and the Brent contract lost US$1.15 to US$69.21 a barrel.
The price of gold was down US$20.62 to US$2,888.22.
In world markets, the Nikkei was up 141.10 points to ¥37,028.27, the Hang Seng was down 447.81 points to HK$23,783.49, the FTSE was down 83.40 points to ₤8,596.48, and the DAX was down 387.99 points to €22,620.95.
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(Top image generated with AI.)
