The S&P/TSX composite index closed up more than 300 points, marking a substantial 1.4% gain in a broad-based rally on Wednesday. Leading the charge were energy, industrial, and utilities stocks. Meanwhile, U.S. stock markets also surged to new heights, with the Dow Jones industrial average climbing 429.39 points to 39,721.36. The S&P 500 index rose by 56.93 points to 5,633.91, while the Nasdaq composite jumped 218.16 points to 18,647.45, hitting fresh record levels.
Tech stocks played a significant role in driving up U.S. markets, with companies like Nvidia, Apple, and Microsoft posting notable gains. Semiconductors remained a strong sector of interest, particularly with Taiwan Semiconductor reporting a 33% revenue increase from the previous year, which propelled its stock up by 3.5% on the Nasdaq.
Apple also received a boost, supported by reports of robust year-over-year PC shipping growth. Wednesday saw the continuation of U.S. Federal Reserve Chairman Jerome Powell’s testimony before Congress. Powell reiterated the Fed’s cautious approach to rate cuts, emphasizing the need to balance the risks of acting too early or too late. Despite this, expectations for an interest rate cut in September remained high, with a 70% likelihood priced in by markets.
In Canada, the Canadian dollar was trading at 73.42 cents US, slightly up from the previous day. The price of crude oil saw an increase of 69 cents to reach US$82.10 per barrel, while natural gas dipped slightly to US$2.33 per mmBTU. The gold market experienced a rise of US$11.80 to US$2,379.70 per ounce, and copper prices also saw an uptick to US$4.61 per pound.
Overall, the markets showed resilience and optimism, driven by strong performances in key sectors and positive economic indicators. The week ahead will bring new reports on U.S. consumer and wholesale inflation, which will be closely monitored for any potential impact on the Fed’s future decisions. Despite ongoing uncertainties, market participants remain hopeful for sustained growth and stability in the coming months.
