Welcome to Markets Desk, here's what's moving markets this Monday.
The Trump administration escalated its trade war with Canada, announcing fifty percent tariffs on select Canadian goods including automobiles, dairy, and alcohol. Washington says Ottawa has engaged in discriminatory trade practices, and markets are watching closely for Ottawa's retaliatory response, which could ripple through cross-border supply chains and weigh on North American equities broadly.
Shifting to currencies and rates, the dollar edged higher Monday, with the dollar index gaining roughly a fifth of a percent. The move was driven by rising Treasury yields and climbing crude prices, the latter tied to escalating US-Iran tensions. Higher oil feeds inflation expectations, and that keeps the Fed tightening narrative alive, supporting the greenback against most major pairs.
Meanwhile, a cyclospora outbreak investigation is casting a shadow over the restaurant sector. Shares of Cava, Chipotle, and Sweetgreen all finished lower as Americans pull back from salads and lettuce-heavy menus. Until health authorities trace the source and issue clear guidance, these names face a headline risk that's difficult to price and harder to shake.
That's the tape. Markets Desk, signing off the floor.
