Canada’s main stock index saw a modest gain on Monday, driven by strength in the energy, technology, and base metal sectors. The S&P/TSX composite index closed up 62.76 points at 22,069.76, while U.S. stock markets also experienced an uptick.
The TSX benefited from a rally in oil prices, with demand holding up as we head into the summer months. The recent interest rate cut by the Bank of Canada signaled a positive outlook for investors, suggesting a soft landing is likely.
Looking ahead, U.S. markets are anticipating key events such as the latest inflation data and the Federal Reserve’s interest rate decision, both scheduled for Wednesday. The Fed’s projection for interest rates could impact market volatility, with a focus on its “dot plot” and expectations for the remainder of the year.
Despite recent central bank actions in Canada and Europe, the Fed remains cautious, waiting for more positive economic data before considering rate cuts. Semiconductor giant Nvidia saw a 0.75% increase following a stock split, reflecting its strong position in the AI sector.
Overall, market indicators were positive, with oil prices rising and the Canadian dollar trading lower against the USD. Gold and copper prices also increased, showing a positive trend in the commodities market.
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