鶹Ƶ

Skip to content

S&P/TSX composite up nearly 250 points, U.S. stock markets also higher

TORONTO — Canada's main stock index gained almost 250 points Friday on broad-based strength, while U.S. stock markets also rose as the U.S. Federal Reserve signalled it is prepared to start cutting its key interest rate.
97c97a285df83828d5e3d16eff757931b611c4017d21d78fb27c9bcc1e255ec8
The exterior of the TMX is seen in Toronto, Wednesday, Nov. 1, 2023. THE CANADIAN PRESS/Chris Young

TORONTO — Canada's main stock index gained almost 250 points Friday on broad-based strength, while U.S. stock markets also rose as the U.S. Federal Reserve signalled it is prepared to start cutting its key interest rate.

In a highly anticipated speech, U.S. Federal Reserve chair Jerome Powell said “the time has come” for the central bank to soon start cutting its key interest rate.

Powell, speaking at the Fed’s annual Jackson Hole conference, said inflation appears largely under control.

“The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” he said.

“I think it’s very, very positive,” said Adelaide Chiu, portfolio manager, vice-president and head of responsible investing at NEI Investments.

In New York, the Dow Jones industrial average was up 462.30 points at 41,175.08. The S&P 500 index was up 63.97 points at 5,634.61, while the Nasdaq composite was up 258.44 points at 17,877.79.

Powell noted in his speech that the labour market is cooling, and that the central bank does “not seek or welcome further cooling in labour market conditions.”

The Fed is widely expected to begin cutting rates in September. The market is now anticipating about three interest rate cuts from the central bank before the end of the year, said Chiu.

“I think there's definitely more confidence in the way that (Powell) spoke,” she said.

“You can see the stocks that would be most impacted by rates, including the NASDAQ or the technology stocks, really positively reacting to that today.”

As the September rate decision approaches, the central bank will keep an eye on the job market, added Chiu.

“I think that really is (Powell’s) main concern right now,” she said.

In Canada, the S&P/TSX composite index closed up 248.61 points at 23,286.08.

Rate expectations north of the border continue to call for a third cut in September, said Chiu.

The ongoing rail labour dispute in Canada didn’t appear to weigh on equities Friday, but Chiu noted that the economic impact of the dispute will be felt later, depending on how short-lived it is.

The Canadian dollar traded for 73.92 cents US compared with 73.52 cents US on Thursday.

The October crude oil contract was up US$1.82 at US$74.83 per barrel and the October natural gas contract was down a penny at US$2.18 per mmBTU.

The December gold contract was up US$29.60 at US$2,546.30 an ounce and the September copper contract was up five cents at US$4.20 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published Aug. 23, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Rosa Saba, The Canadian Press

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks