Following a more than 11% drop over the previous four sessions, the Canadian stock market staged a solid rebound on Wednesday after U.S. president Donald Trump unexpectedly announced a 90-day pause on heightened trade tariffs. As the news of the tariff delay broke, investor sentiment improved sharply, lifting the S&P/TSX Composite Index by 1,220 points, or 5.4%, to 23,727 — marking its best single-day percentage gain in over five years.
While all key sectors participated in the rally, the biggest gains were seen in technology, mining, and industrial stocks, as easing trade tensions lifted commodity prices and improved the broader economic outlook.
Notably, while Trump doubled down on tough rhetoric against China — announcing an immediate hike in tariffs to 125% — he also surprised markets by introducing a 90-day pause and temporarily lowering reciprocal tariffs to 10% for cooperating nations. This unexpected olive branch helped cool fears of an all-out trade war and triggered a wave of relief buying across global equities.
Top TSX Composite movers and active stocks
Baytex Energy, Vermilion Energy, Aritzia, and Celestica jumped by over 18% each, making them the top-performing TSX stocks for the day.
Shopify (TSX:SHOP) also surged by 17.5% to $129.09 per share, making it among the session’s top gainers on the Toronto Stock Exchange. Besides the sharp broader market recovery, this rally in SHOP stock was driven by the company’s announcement to accelerate the global rollout of its Shop Pay Installments feature in partnership with Affirm.
The Canadian launch of Shop Pay Installments marks the payment product’s first availability outside the United States, with general access planned for Canada and the U.K. this summer. The feature will later expand into Australia and Western Europe. Investors cheered the move as it strengthens Shopify’s international footprint and improves its payments ecosystem. On a year-to-date basis, SHOP stock is still down nearly 16%.
In contrast, Quebecor and Hydro One slipped by at least 2% each, making them the day’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Baytex Energy, Whitecap Resources, TC Energy, and Cenovus Energy were the five most active stocks on the exchange.
TSX today
West Texas Intermediate crude oil futures prices fell in early trading on Thursday, but gold prices traded on a firm note. Given these mixed signals, the TSX could see a more measured open today.
While no major domestic economic releases are due, Canadian investors will keep a close eye on the important U.S. consumer inflation data this morning. In addition, any developments related to the escalating U.S.-China trade tensions will remain a key focus for investors, especially as markets gauge the potential outcomes of the 90-day tariff pause.
On the corporate events front, the TSX-listed Richelieu Hardware will release its latest quarterly earnings report today. Analysts expect the Saint Laurent-based specialty hardware firm to post earnings of $0.33 per share for the February quarter with $439.7 million in revenue.
Market movers on the TSX today
