TORONTO 鈥� Canada's main stock index rose more than 100 points Thursday, helped by strength in industrial and utility stocks, while U.S. stock markets also rose.
The S&P/TSX composite index closed up 122.58 points at 25,434.08.
鈥淪tocks are taking a bit of a breather today,鈥� Angelo Kourkafas, senior investment strategist at Edward Jones, noting the calmer trading came after strong gains on Wednesday.
However, U.S. markets still posted their first all-time high of the year.
The Dow Jones industrial average was up 408.34 points at 44,565.07, leading markets with a gain of 0.9 per cent. The S&P 500 index was up 32.34 points at 6,118.71, while the Nasdaq composite was up 44.34 points at 20,053.68.
The Nasdaq lagged its peers, trading in the red for most of the day before eking out a gain just before the bell.
鈥淲e have seen yields rise a bit today, which is pressuring the tech parts of the market,鈥� said Kourkafas.
Canadian retail sales were flat in November, the latest report by Statistics Canada showed, but early estimates point to a December rebound as the GST/HST tax holiday began.
Meanwhile, jobless claims in the U.S. ticked higher but are still historically low, said Kourkafas.
Next Wednesday, the Bank of Canada is expected to cut its key interest rate again, he said.
鈥淭he Bank of Canada clearly has moved aggressively to get policy to the high end of its neutral range,鈥� he said.
On the same day, the U.S. Federal Reserve is expected to pause.
鈥淓conomic data has surprised to the upside since the last meeting,鈥� said Kourkafas.
鈥淕iven this underlying strength in the [U.S.] economy and some uncertainty around the inflation outlook, they will likely pause. But markets, investors will be looking for any signs that the door remains open for a potential March rate cut.鈥�
A full slate of U.S. earnings next week including four Magnificent Seven companies, plus the central bank decisions will be the main drivers of markets next week, said Kourkafas.
Meanwhile, the threat of tariffs continues to hang over both the U.S. and Canada.
U.S. President Donald Trump has thrown out Feb. 1 as a possible start date for tariffs on goods from Canada.
Trump repeated his threats in a livestreamed speech before the World Economic Forum on Thursday.
However, the tariff talk could be a negotiating tactic, noted Kourkafas.
鈥淚t is a known unknown,鈥� he said.
The Canadian dollar traded for 69.58 cents US compared with 69.59 cents US on Wednesday.
The March crude oil contract was down 82 cents at US$74.62 per barrel and the March natural gas contract was down four cents at US$3.47 per mmBTU.
The February gold contract was down US$5.90 at US$2,765 an ounce and the March copper contract was up three cents at US$4.33 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Jan. 23, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
