Tsx Drops Over 350 Points as Oil Nears US$90 per Barrel
Friday at 9: 00 a. m. ET — The S&P/TSX composite dropped more than 350 points as oil moved toward US$90 a barrel and broader North American markets slipped, with tsx investors cutting exposure to cyclicals and energy-linked risk. The sell-off reflects an immediate repricing after a surge in oil and fresh U. S. employment weakness changed market expectations this week.
Tsx slide mirrors sharp losses across North American benchmarks
Canada’s benchmark fell by more than 350 points while major U. S. indexes also declined: the Dow Jones industrial average was down 453. 19 points at 47, 501. 55, the S&P 500 lost 90. 69 points at 6, 740. 02 and the Nasdaq composite fell 361. 31 points at 22, 387. 68. Market participants flagged company reports and earnings calendars as additional near-term pressure, with Constellation Software Inc. releasing results in Canada and Wall Street watching earnings from Hewlett Packard Enterprise Co.
Oil spike and weaker U. S. jobs data triggered the move, says Dustin Reid
Oil surged above the US$90-per-barrel mark—an April crude contract quoted at US$90. 90 per barrel earlier—while U. S. employers unexpectedly cut 92, 000 jobs last month, a combination that pushed investors to reassess growth prospects. “The concern here that’s been creeping into the market throughout the week is that this conflict is going to be longer than originally discussed and oil prices, energy prices are going to remain higher for longer, ” said Dustin Reid, vice-president and chief strategist for fixed income at Mackenzie Investments.
Oil at levels not seen since mid-2022 and comparisons to the 1970s
Oil prices have climbed to levels not seen since mid-2022, and analysts are describing the move as the worst oil supply shock since the 1970s, with some major producers cutting supplies and fears of prolonged shipping disruptions intensifying as the regional conflict expands. That combination has pushed inflation worries back onto trading desks and fed through to currencies and bond yields.
Currency movements reflected the shift: the U. S. dollar index rose 0. 37 per cent to 99. 35, while the Canadian dollar traded in a narrow range earlier, with a day range between 73. 48 and 73. 93 U. S. cents. In fixed income, the yield on the U. S. 10-year note was last up at 4. 170 per cent.
For commodities beyond oil, spot gold eased by 1. 5 per cent while U. S. gold futures for April delivery fell 1. 1 per cent to trade lower in the session.
Market strategists warned that if oil remains elevated, the policy outlook could shift: persistent energy-driven inflation would complicate the path for interest-rate cuts and could favor lower-growth scenarios that weigh on equities more broadly.
More details and company earnings updates are expected at 4: 00 p. m. ET; if oil prices retreat or fresh labour data improves, some market pressures could ease by the end of the trading day.
