👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Stocks Warm to U.S. Fed Rate Cut

Published 2024-09-19, 12:28 p/m
© Reuters.  Stocks Warm to U.S. Fed Rate Cut
USD/CAD
-
US500
-
DJI
-
CAT
-
JPM
-
CAD/USD
-
GOOGL
-
NVDA
-
HD
-
MU
-
AMD
-
US10YT=X
-
GSPTSE
-
AAV
-
ALA
-
BN
-
BCE
-
CLS
-
CVE
-
HBM
-
L
-
LUN
-
WN
-
SII
-
SPCDNX
-
META
-
IVN
-
H
-
QBRa
-
DND
-
BITF
-

Baystreet.ca - Equity markets climbed to a record high in Toronto boosted by technology stocks, as investors cheered an outsized interest-rate cut by the U.S. Federal Reserve.

The TSX Composite Index zoomed 273.67 points, or 1.2%, to conclude Thursday at 23,866.27. The TSX is up 13.3% this year.

The Canadian dollar spiked 0.27 to 73.75 cents U.S.

Investors world over reacted positively to the U.S. central bank's 50-basis-point rate cut after keeping policy rates at an over two-decade high for over a year.

Pizza Pizza Royalty announced its monthly cash dividend of $0.0775 per share for September. Shares in the company gathered a dime to $13.08.

Ivanhoe Mines (TSX:IVN) took on $1.16, or 6.5%, to $19.09, while Lundin Mining (TSX:LUN) tacked on 63 cents, or 4.9%, to $13.30. Hudbay Minerals (TSX:HBM) progressed 37 cents, or 3.5%, to $10.71.

Among tech issues, Bitfarms jumped seven cents, or 2.6%, to $2.75.

Tech firms prospered, most notably, Celestica (TSX:CLS) jumped $3.47, or 5.4%, to 67.24, while Dye & Durham took flight 76 cents, or 5.1%, to $15.77.

Among energy plays, Advantage Oil advanced 24 cents, or 2.7%, to $9.25, while Cenovus (TSX:CVE) triumphed 65 cents, or 2.9%, to $23.28.

Financials were also in the winners’ circle, with Sprott Inc . (TSX:SII) climbing $2.10, or 3.8%, to $57.38, while Brookfield Corporation popped $2.58, or 3.8%, to $70.62.

Utilities proved one of the few anchors on the market, with Hydro One (TSX:H) sagging $1.41, or 3%, to $45.79, while Altagas fell 78 cents, or 2.2%, to $34.19.

Among consumer staples, Loblaw Companies (TSX:L) forfeited $3.31, or 1.9%, to $170.70, while George Weston (TSX:WN) forked over $3.50, or 1.6%, to $218.72.

In communications, BCE (TSX:BCE) stumbled 86 cents, or 1.8%, to $47.67, while Quebecor (TSX:QBRa) lost nine cents to $33.88.

ON BAYSTREET

The TSX Venture Exchange recovered 6.51 points, or 1.1%, to 582.72.

All but there of the 12 TSX subgroups were higher, with information technology ahead 2.6%, while energy surged 1.8%, and financials were richer 1.1%.

The three laggards proved to be utilities, sliding 1.1%, consumer staples, off 0.8%, and communications, sliding 0.7%.

ON WALLSTREET

Stocks jumped Thursday, with the Dow Jones Industrial Average and S&P 500 rising to new all-time highs, as traders cheered the Federal Reserve’s Wednesday decision to lower interest rates by a half percentage point.

The 30-stock index ballooned 522.09 points, or 1.3%, to 42,025.19, its first close above the 42,000 threshold.

The much-broader index piled on 95.38 points, or 1.7%, to 5,713.63, topping 5,700 for the first time.

The NASDAQ jumped 440.68 points, or 2.5%, to 18,013.98.

Traders got some validation that the Fed was engineering a soft landing for the economy on Thursday as weekly jobless claims fell by 12,000 to 219,000, which was far below estimates.

Tech stocks rallied as the rate cut spurred investors to return to a risk-on mood. Nvidia (NASDAQ:NVDA) added 4% and AMD (NASDAQ:AMD) shares popped nearly 6%. Micron Technology (NASDAQ:MU) added 2.2%. Other big tech stocks such as Meta (NASDAQ:META) Platforms took on 3.9% and Alphabet (NASDAQ:GOOGL) advanced1.5%.

Stocks leveraged to lower rates spurring the economy also jumped Thursday. Financial giant JPMorgan Chase (NYSE:JPM) rose 1.4%. Industrial stock Caterpillar (NYSE:CAT) grabbed 5.1% and Home Depot (NYSE:HD) gained 1.7%.

The Fed slashed its overnight lending rate to a range of 4.75% to 5% from 5.25% to 5.5% on Wednesday, which came as a surprise to some investors who criticized the size of this initial cut. This is the first rate reduction delivered by the Fed in four years.

Prices for the 10-year Treasury sagged, lifting yields to 3.73% from Wednesday’s 3.71%. Treasury prices and yields move in opposite directions.

Oil prices took on $1.07 to $71.98 U.S. a barrel.

Gold prices strengthened $13.00 to $2,611.60.

This content was originally published on Baystreet.ca

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.