Global Economy Teeters as Trade Tensions Dominate Markets

Stocks tumble as tariff war overshadows solid jobs, markets wrap

TORONTO — The Toronto stock market tumbled on Friday as investors grew increasingly anxious about the escalating trade war between the United States and China.

The S&P/TSX composite index fell 144.84 points, or 0.8 per cent, to 16,332.39, while the TSX 60, which tracks the 60 largest companies on the market, lost 1.2 per cent.

The decline came as the Dow Jones industrial average plummeted 444.05 points, or 1.7 per cent, to 24,331.12, and the S&P 500 index fell 43.53 points, or 1.5 per cent, to 2,632.93.

The losses were widespread, with only a handful of sectors managing to eke out gains. Energy and materials were among the biggest decliners, as investors grew worried about the impact of tariffs on global commodity prices.

The jobs market, meanwhile, continued to show signs of strength, with the U.S. adding 313,000 jobs in February, according to the Bureau of Labor Statistics. The unemployment rate remained at a low 3.8 per cent.

However, the solid jobs numbers were overshadowed by the escalating trade tensions, which have been weighing on markets for weeks. The U.S. and China have imposed tariffs on hundreds of billions of dollars' worth of each other's goods, with no clear end in sight.

"It's a classic case of a strong jobs report being overshadowed by concerns about the trade war," said Craig Fehr, investment strategist at Edward Jones. "Investors are getting increasingly worried about the impact of tariffs on global trade and the potential for a prolonged slowdown in the global economy."

The market also got a boost from the Bank of Canada's decision to keep interest rates unchanged, as widely expected. The central bank cited the strength of the jobs market and the resilience of the economy as reasons for its decision.

Despite the market's decline, many investors remain optimistic about the long-term prospects for the Canadian economy. The country's strong jobs market and low unemployment rate have helped to fuel growth, and the central bank's decision to keep interest rates low has made it easier for consumers and businesses to borrow money.

"Canada's economy is in a good place right now," said Fehr. "We're seeing strong job growth, low unemployment and a resilient economy. The trade war is a concern, but it's not a reason to panic."