TSX drops but records largest weekly gain since November

Canada's main stock index, the S&P/TSX composite, ended the trading week down 0.4% at 24,968.49 points. Despite this decline on Friday, the index posted a weekly gain of 1.7%, marking its biggest increase since November. Mining and industrial shares saw declines, as attention shifted back to uncertainty surrounding U.S. tariffs. U.S. President Donald Trump's recent comments raised hopes that tariffs set to begin in April may not be as severe as previously expected. Currently, tariffs on steel and aluminum have already increased, impacting Canada as a major producer. Joseph Abramson, co-chief investment officer at Northland Wealth Management, mentioned the firm's cautious approach toward Canadian stocks while expressing a preference for U.S. banks. He noted that the market is heavily influenced by policy changes, especially in Canada, where trade negotiations can be challenging. The Federal Reserve has kept interest rates steady but signaled that cuts may come later in the year. The materials group, which includes gold mining, fell by 1% as gold prices dropped from recent highs. Consumer discretionary shares decreased by 0.8%, following reports of declining retail sales. Meanwhile, technology stocks helped soften the TSX's fall, rising by 0.7%. Additionally, Canada announced it will cancel a planned increase to the capital gains tax, which had faced significant criticism from the industry.