Canada's main stock index, the S&P/TSX composite index, experienced a boost today, led by base metal, financial, and tech stocks. Despite energy sector weakness, broad-based strength pushed the index up by 108.11 points to 20,182.76. This comes as a relief following the previous week's volatility where the S&P/TSX composite index lost more than two per cent over five days.
Simultaneously, U.S. stock markets also started the trading week with gains primarily driven by technology names. The Dow Jones industrial average was up 87.13 points at 34,663.72, while the S&P 500 index rose by 29.97 points to 4,487.46. The Nasdaq composite saw an increase of 156.37 points, settling at 13,917.90.
Inflation could see a short-term rise due to increasing gas prices along with upward pressure from wages and housing costs.
While the Bank of Canada is likely nearing the end of its rate-hiking cycle following last week’s hold, it's premature to conclude they're done hiking rates altogether according to Djataou. On the other hand, U.S consumers appear to be faring better as they're less sensitive to rate hikes. She also noted that the strength in equities, particularly tech, is boosting consumer confidence.
Looking forward, the U.S. Federal Reserve is expected to hold rates steady next week, but a hike could still be on the horizon later this year, Djataou said.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.