Baystreet.ca - Canada's main stock index slid on Wednesday, hurt by rise in yields after receding July bets for an interest-rate cut by the Bank of Canada, but gains in materials shares kept the losses in check.The TSX Composite Index remained lower 62.03 points to move into Wednesday afternoon at 21,726.45.
The Canadian dollar skidded 0.2 to 73.02 cents U.S. Onex Corp-backed WestJet Airlines said a union representing its maintenance engineers rejected its new offer and served a second strike notice, just days after the union called off a strike by agreeing to return to the bargaining table. Parent company Onex’s shares gave up earlier gains and backed off 40 cents to $93.82. Traders now see the Canadian central bank holding rates steady in July, while anticipating roughly two 25-basis-point rate cuts later this year.
BofA Securities, however, expects a cut in July, as it anticipates a fall in July CPI data which is expected to be released right before BoC' monetary policy meeting.ON BAYSTREET The TSX Venture Exchange fought its way ahead 1.04 points to 565.61. Eight of the 12 TSX subgroups were lower midday Wednesday, weighed most by communications, dropping 1.2%, while energy and real-estate slipped 0.9% each. The four gainers were health-care, advancing 0.9%, materials, picking up 0.8%, and gold, better by 0.4%.
ON WALLSTREET The S&P 500 ticked down Wednesday as investors evaluate their holdings following a booming first half of the year led by artificial intelligence plays. The S&P 500 was on track for its fourth losing day in the past five as it closes out this week with a six-month gain of nearly 15%.
The Dow Jones Industrials fought their way back to the breakeven point by lunch hour, just falling short 3.54 points to 39,108.62.The much-broader eked ahead 1.37 points to 5,470.67.The NASDAQ gained 57.3 points to 17,775.85. The NASDAQ is set for a 18.2% first-half gain because of a big run in Nvidia (NASDAQ:NVDA).Nvidia declined 2% Wednesday after climbing 7% on Tuesday, its first positive day in four. The AI chipmaker’s $3.1 trillion market value has come to dominate the cap-weighted S&P 500, and its 150% surge in 2024 has sparked concerns that most other stocks are failing to participate in this year’s rally.Most stocks were lower in the S&P 500 on Wednesday, but there were some positive standouts in the market. FedEx (NYSE:FDX) popped 12% after issuing adjusted earnings that surpassed estimates in the fiscal fourth quarter.
Rivian Automotive soared 33% after Volkswagen (ETR:VOWG_p) Group said it would invest up to $5 billion in the electric vehicle company.Stocks were also sluggish as investors await fresh inflation data on Friday with the release of May’s personal consumption expenditures price index. The Federal Reserve keeps a close eye on this gauge, and investors are hopeful that the central bank will lower interest rates at some point later this year if price increases continue to moderate.Prices for the 10-year Treasury slid, raising yields 4.31% from Tuesday’s 4.24%. Treasury prices and yields move in opposite directions. Oil prices shed 39 cents at $80.44 U.S. a barrel. Gold prices withered $20.00 to $2,310.80