Baystreet.ca - Canada's main stock index hit a record high on Friday amid a broad-based rally, after U.S. Federal Reserve Chair Jerome Powell endorsed the likeliness of an imminent interest-rate cut.
The TSX Composite Index screamed ahead 305.15 points, or 1.3%, to catch its breath at noon EDT at 23,342.62. The index pulled ahead on the week so far by 288 points, or 1.25%.
The Canadian dollar hiked 0.55 cents to 74.05 cents U.S.
In corporate news, the Teamsters union said workers at Canadian National Railway (TSX:CNR) will return to work after the government moved to end the lockout that threatened the economy. Shares in CN triumphed $2.42, or 1.6%, to $158.60.
However, work stoppage at Canadian Pacific Kansas City (TSX:CP) is expected to continue. CP shares grabbed $2.16, or 2%, to $111.59.
On the economic slate, retail sales decreased 0.3% to $65.7 billion in June. Sales were down in four of nine subsectors and were led by decreases at motor vehicle and parts dealers.
ON BAYSTREET
The TSX Venture Exchange flew 7.75 points to 578.62, putting the index up 12.21 points, or 2.16% since last Friday.
All 12 TSX subgroups were up midday, with real-estate galloping 1.6%, financials healthier by 1.5%, and materials jumping 1.4%.
ON WALLSTREET
Stocks rose Friday after Federal Reserve Chair Jerome Powell indicated interest rate cuts were on the horizon.
The Dow Jones Industrial index bounced 356.75 points midday to 41,069.53.
The S&P 500 index regained 45.54 points to 5,616.18.
The NASDAQ recovered 196.65 points, or 1.1%, to 17,816.
Technology stocks rallied with particular strength as investors grew hopeful that a lower-rate environment would benefit this group. Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA) both jumped around 3%, while Advanced Micro Devices (NASDAQ:AMD) hiked more than 2%.
The three major averages are heading for a winning week despite some pressure on Thursday from rising Treasury yields. The S&P 500 advanced 1.2% on the week, while the NASDAQ is now up about 1.3%, while the Dow has added 0.9%.
Stocks took a leg up after Powell signaled decreases to interest rates ahead during his speech in Jackson Hole, Wyoming. But Powell did not provide specific information on when or how big any cuts to the borrowing cost would be.
Prices for the 10-year Treasury jumped, lowering yields to 3.81% from Thursday’s 3.87%. Treasury prices and yields move in opposite directions.
Oil prices picked up $1.78 at $74.79 U.S. a barrel.
Gold prices tacked on $31.20 to $2,547.90.