TORONTO – Strength in technology stocks helped lift Canada’s main stock index on Wednesday, while U.S. stock markets were mixed.
The S&P/TSX composite index closed up 121.79 points at 25,051.68.
In New York, the Dow Jones industrial average was up 106.84 points at 42,635.20. The S&P 500 index was up 9.22 points at 5,918.25, while the Nasdaq composite was down 10.80 points at 19,478.88.
Markets ended the day relatively flat after a choppy trading session, which was likely in reaction to pressure from U.S. bond yields, said Kevin Headland, co-chief investment strategist at Manulife Investment Management.
Investors got more data on the U.S. job market Wednesday ahead of the major monthly jobs report Friday. One report suggested non-government employers slowed their hiring last month by more than expected.
“Lots of attention is going to be paid to non-farm payrolls on Friday just to give some insight as to what the Federal Reserve’s plan is,” said Headland.
The U.S. Federal Reserve signalled in December it expects to cut its key interest twice in 2025, down from a previous prediction of four cuts. The central bank has increasingly been focused on the labour market which has remained strong in the face of higher interest rates.
“The rate expectations changed materially multiple times last year, and I think they want to make sure they’re away from going down too far in terms of their rate path,” said Headland.
With inflation in the U.S. “still sticky,” the Fed will continue to watch the data closely, he said.
In a speech Wednesday, Fed governor Christopher Waller said he still expects the central bank to cut this year.
Investors are waiting for president-elect Donald Trump’s inauguration Jan. 20, noted Headland, to see whether the policies he’s floated, such as tariffs, will come to pass, and how those policies could affect growth and inflation.
But overall, 2025 looks like a good year for companies, said Headland, adding the breadth of earnings growth is likely to improve.
In Canada, politicians and pundits continued to trade barbs with Trump as his comments about making Canada a 51st state continued.
Trump’s tariff threats have sparked worries that Canada’s economy could be in for a rocky few years if the two trading partners’ relationship continues to sour.
The Canadian dollar traded for 69.49 cents UScompared with 69.74 cents US on Tuesday.
The February crude oil contract was down 93 cents at US$73.32 per barrel and the February natural gas contract was up 20 cents at US$3.65 per mmBTU.
The February gold contract was up US$7.00 at US$2,672.40 an ounce and the March copper contract was up six cents at US$4.26 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Jan. 8, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
