Stocks Fall as CPI Report Influences BoC Rates; WSP Buys U.S. Power Firm
On December 15, 2025, financial markets reacted to various economic updates and corporate news. Significant events included Ford Motor Company’s announcement of a $19.5 billion writedown as the automaker pivots away from certain electric vehicle (EV) models and WSP Global’s acquisition of TRC Companies for $3.3 billion.
Ford’s Bold Move in Electric Vehicles
Ford Motor Company has decided to discontinue several electric vehicle models, including a next-generation electric truck. Instead, it will replace the fully electric F-150 Lightning with an extended-range model that utilizes a gas-powered engine for battery recharging. This shift marks a larger trend within the auto industry as it adjusts to changing demand for EVs.
The Dearborn, Michigan-based company plans to stagger the $19.5 billion writedown primarily over the fourth quarter and extending through 2027. Despite this setback, Ford raised its 2025 adjusted earnings guidance to about $7 billion, a slight increase from the previous estimate of $6 to $6.5 billion. Following this announcement, Ford shares saw a minor uptick of approximately 1% in after-hours trading.
WSP Global’s Expansion in Power Sector
WSP Global announced its plan to acquire TRC Companies, a U.S. power and energy firm, in an all-cash deal worth $3.3 billion. This acquisition aims to bolster WSP’s position as a leading engineering and design firm in the United States. As part of this deal, WSP will conduct an equity offering totaling $850 million. The transaction is seen as a strategic move to enhance WSP’s power and energy services.
Market Reactions and Economic Context
The Toronto Stock Exchange (TSX) experienced a slight decline, closing down by 43.95 points at 31,843.44. This drop follows two days of losses, influenced by falling oil prices and tempered expectations regarding the Bank of Canada’s interest rate adjustments. Despite the decline, several sectors showed resilience, including a 0.5% gain in financials.
Canada’s annual inflation rate held steady at 2.2% for November, which was lower than the previously anticipated 2.3%. The inflation data has led market participants to adjust their expectations, now pricing in a reduced chance of further rate hikes by the Bank of Canada next year. The energy sector faced pressure as oil prices fell by 1.1%, settling at $56.82 per barrel.
U.S. Market Trends
In the United States, the stock market closed lower as investors gauged upcoming economic reports. The S&P 500 lost 9.95 points, while the Nasdaq Composite dropped 135.14 points. Analysts closely monitored the looming releases of nonfarm payroll figures and inflation reports, which could significantly influence future monetary policies.
Overall, these developments highlight a crucial intersection of corporate strategy and economic indicators, laying the groundwork for potential shifts in market behavior as the year progresses.
