TSX finishes higher after soft U.S. inflation data, trade thaw bolsters tech

Published 2025-05-14, 06:48 a/m
© Reuters

Investing.com - Canada’s main stock exchange closed higher on Wednesday, pointing to a possible breather in a multi-day winning streak.

By the 4:00 ET close, the S&P/TSX 60 index jumped by 6.6 points, or 0.4%.

The Toronto Stock Exchange’s S&P/TSX composite index increased by 75.6 points or 0.3%. The index rose by 84.68 points, or 0.3%, on Tuesday, notching its highest closing level since February 19. It was the sixth consecutive day of gains for the average.

Financials and energy stocks, which account for a large portion of the index’s weighting, both advanced.

Headline annualized U.S. consumer price growth that undershot expectations bolstered sentiment, although some worries persisted that the data is yet to fully reflect the impact of recent U.S. tariff policies.

The release came after the U.S. and China agreed on Monday to a trade agreement that will see them lower sky-high tariffs on each other and pause the levies for 90 days.

U.S. stocks mixed, tech flies

U.S. stocks were mixed on Wednesday, after the positive start to the week on optimism around the inflation data and the U.S.-China trade deal.

At the 4:00 ET close, the NASDAQ Composite rose 136.7 points or 0.7%, and the S&P 500 gained 6 points or 0.1%. Conversely, the Dow Jones Industrial Average fell 89.4 points or 0.2%.

The blue-chip Dow closed 0.6% lower Tuesday, dragged down by a nearly 18% slump in UnitedHealth (NYSE:UNH), but the benchmark S&P rose 0.7%, while the tech-heavy Nasdaq jumped 1.6%.

The main Wall Street indices have rebounded strongly on relief after the announcement of a U.S.-China trade deal, with the broad-based S&P 500 now turning positive year-to-date for the first time since February.

Super Micro Computer was the winner of the day, gaining 15.7% by closing time. Shares in the company flew after the company announced a multi-year, $20 billion partnership with Saudi data center firm DataVolt.

In after-hours earnings, AI infrastructure company CoreWeave Inc (NASDAQ:CRWV) stock rocketed up 9% after crushing revenue estimates. The similarly AI-leveraged Cisco Systems Inc (NASDAQ:CSCO) gave upbeat guidance and strong results, sending shares up nearly 4%. 

Crude slips lower

Oil prices edged lower Wednesday from the recent two-week high after a sharp jump in U.S. oil inventories raised demand concerns.

At 5:10 ET, Brent futures slipped to $65.82 a barrel, and Crude Oil WTI Futures fell 0.8% to $62.11 per barrel.

U.S. crude stocks rose 4.3 million barrels in the week ended May 9, according to data from the industry body American Petroleum Institute, released on Tuesday.

Official weekly inventory figures from the U.S. Energy Information Administration are due later in the session, and could indicate that the demand side is still grappling with significant challenges.

Both benchmarks had climbed more than 2.5% in the previous session, adding to Monday’s gains, after China and the U.S., the two largest crude consumers, agreed to pause their trade war for at least 90 days while cutting their respective tariffs.

Gold falls

Gold prices dropped as bullion’s safe-haven appeal took a hit from easing U.S.-China trade tensions, while the softer-than-expected U.S. inflation reading further exerted downward pressure.

Cooling consumer prices diminish demand for traditional safe-haven assets like gold, which are often used to preserve value during times of high inflation.

As of 5:10 ET, spot gold dipped by 2.2% to $3,177.52 per ounce, while gold futures expiring in June declined 2.6% to $3,180.85 an ounce.

(Scott Kanowsky also contributed to this article)

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.