04:17 PM EST, 01/06/2025 (MT Newswires) -- The Toronto Stock Exchange fell back for the first time in four sessions on Monday after Prime Minister Justin Trudeau announced that he is stepping down and prorogued Parliament until March.

The S&P/TSX Composite Index closed down 73.75 points to 24,999.79, down nearly 700 points from its record high set one-month earlier. Health Care, down 1.52%, and Base Metals, down 1.03% were the biggest decliners on the day.

West Texas Intermediate (WTI) crude oil fell for the first time in six sessions on Monday, despite expectations stimulus measures introduced by China last week will boost demand. WTI crude oil for February delivery closed down US$0.40 to US$73.56 per barrel, while March Brent crude closed down US$0.21 to US$76.30.

Gold traded lower late afternoon Monday even as the dollar moved sharply lower. Gold for February delivery was last seen down US$10.00 to US$2,644.70 per ounce.

The implications of Trudeau's decision to stand down ahead of a potential tariff war with the United States were addressed by BMO in a morning note that stated his departure "would add a layer of uncertainty to the economic and political landscape," at a time when Canada is already facing a slew of potential headwinds, including the possibility of a trade war with its largest trading partner.

BMO is already looking ahead for November's merchandise trade deficit on Tuesday, which it expects to widen to $1 billion from $900 million in the prior month. In addition, the December's jobs report on Friday will likely highlight a weakening labor market, with BMO expecting a modest increase of just 10,000 new jobs.

In its weekly market insight, Edward Jones reported in its weekly market insight that 2024 proved to be a stellar year for investors. The TSX gained 18% and the S&P 500 achieved its second consecutive year of 20%-plus performance for the first time since 1998. U.S. mega-cap tech led the way, but portfolios enjoyed solid gains across sectors, styles and market caps.

"We think 2025 will bring a mix of headwinds and tailwinds along with some policy uncertainty around tariffs and interest rates. But ultimately, we believe stocks and bonds can build on 2024's gains, as the main drivers that propelled the stock market higher over the past 12 months appear poised to continue," stated Edward Jones.