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TSX Peaks Amid World Tensions

Published 2024-07-31, 12:32 p/m
© Reuters TSX Peaks Amid World Tensions
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Baystreet.ca - Equities in Toronto hit a record high on Wednesday as tech and energy shares gained. This, after the killing of a Hamas leader ratcheted up tensions in the Middle East, while markets digested U.S. Federal Reserve's rate decision.

The TSX Composite Index rose 286.41 points to conclude Wednesday at 23,110.81, an all-time high.

The Canadian dollar moved ahead 0.21 cents at 72.41 cents U.S.

Tech was where the action was, with Celestica (TSX:CLS) hiking $4.66, or 6.9%, to $72.41, while CGI Group (TSX:CGI) spiked $6.93, or 4.6%, to $157.43.

In energy, Precision Drilling (TSX:PD) made the biggest statement, with a gain of $6.96, or 7.1%, to $106.40, while Baytex Energy (TSX:BTE) shot higher 26 cents, or 5.3%, to $5.13.

Gold also fared well, with New Gold (TSX:NGD) up 37 cents, or 13.1%, to $3.19, while Lundin Gold jumped $1.11, or 4.9%, to $23.90.

In real-estate, units of Allied Properties REIT (TSX:AP_u) dropped 90 cents, or 5.2%, to $16.55, while Killam Apartment REIT sank 42 cents, or 2.2%, to $18.53.

Economically speaking, Statistics Canada reported GDP grew for the fourth time in five months, increasing 0.2% in May, as both goods-producing and services-producing industries expanded in the month.

ON BAYSTREET

The TSX Venture Exchange rumbled 9.65 points, or 1.7%, to 582.58.

All but one of the 12 TSX subgroups were positive, with information technology ahead 3%, energy soaring 2.8%, and gold jumping 2.5%.

The lone laggard was in real-estate, retreating 0.9%.

ON WALLSTREET

Stocks rallied Wednesday after the Federal Reserve kept interest rates unchanged, as expected, while highlighting inroads against inflation. Traders also poured back into mega-cap tech as chip names soared.

The Dow Jones Industrials roared higher by 99.73 points to 40,843.06.

The S&P 500 index rocketed 85.86 points, or 1.6%, to 5,522.30.

The NASDAQ popped 451.98 points, or 2.6%, to 17,599.40. It was the best session since February for both NASDAQ and S&P.

Mega cap tech names made a comeback during Wednesday’s trading session. Nvidia (NASDAQ:NVDA) shares gained about 12.5%, clawing back some of this month’s losses as the stock headed for its best day since February 22. The chipmaker soared as better-than-expected results from rival Advanced Micro Devices (NASDAQ:AMD) stoked optimism in the semiconductor space. Other tech stocks such as Apple (NASDAQ:AAPL), Meta (NASDAQ:META) Platforms and Amazon (NASDAQ:AMZN) were also higher. Microsoft (NASDAQ:MSFT), however, pulled back 1% on disappointing quarterly cloud revenue.

Boeing (NYSE:BA) added 2.4% after announcing a new CEO. The aerospace company also reported a wider-than-expected loss and disappointing revenue for the second quarter. Humana (NYSE:HUM), meanwhile, slid 10.5% after posting weak guidance.

The Federal Open Market Committee struck a slightly more optimistic tone in its post-meeting statement, saying that in recent months, further progress has been made towards bringing inflation down closer to the central bank’s 2% target.

Jobs data released Wednesday hinted at a slowing economy and supported central bankers’ efforts to reduce inflation. Private job growth slowed further in July as the pace of wage gains dropped to a three-year low, according to the latest ADP (NASDAQ:ADP) report.

Prices for the 10-year Treasury gained slightly, with yields falling to 4.06% from Tuesday’s 4.14%. Treasury prices and yields move in opposite directions.

Oil prices perked $3.65 at $78.38 U.S. a barrel.

Gold prices shone brighter $41.30 to $2,493.20

This content was originally published on Baystreet.ca

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