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In New York, the Dow Jones industrial average was down 269.67 points at 42,140.43 the day after it saw a more than 1,100-point gain. The S&P 500 index was up 42.36 points at 5,886.55, while the Nasdaq composite was up 301.74 points at 19,010.08.

Stocks rallied across the board on Monday after a weekend China-U.S. trade meeting resulted in a 90-day pause on tariffs between the two economic heavyweights. 

On Tuesday, U.S. investors were focused on better-than-expected inflation report showing a slowing to 2.3 per cent last month from 2.4 per cent in March, said Macan Nia, co-chief investment strategist at Manulife Investment Management. 

“Investors saw it as a good news story,” he said. 

“It solidifies the likelihood that the fed begins cutting (interest rates) earlier rather than later and they may cut two or more times this year, so that’s what has got investors across the world excited today.” 

Later this week, Nia said he’d be looking at retail sales and Producer Price Index data out of the U.S. showing how resilient consumers are. 

Nia said Bay Street was “piggybacking” on the improved U.S. market sentiment. A boost in the price of oil didn’t hurt either, as the Canadian market is heavily weighted toward energy. The energy subindex on the TSX posted an almost two per cent gain on Tuesday. 

The June crude oil contract was up US$1.72 at US$63.67 per barrel and the June natural gas contract was flat at US$3.65 per mmBTU.

The June gold contract was up US$19.80 at US$3,247.80 an ounce and the July copper contract was up 10 cents US to US$4.72 a pound.

The Canadian dollar traded for 71.59 cents US compared with 71.44 cents US on Monday. 

This report by The Canadian Press was first published May 13, 2025.

— With files from The Associated Press. 

Companies in this story: (TSX: GSPTSE, TSX: CADUSD)