The “Fearless Girl” statue is seen placed outside the New York Stock Exchange on Wednesday, June 18, 2025, in New York. (AP Photo/Yuki Iwamura)
Canada’s main stock index inched upward on Wednesday, while U.S. markets wrapped the day with mixed results as investors watched closely for updates on interest rates from the U.S. Federal Reserve.
The S&P/TSX composite index added 18.46 points to close at 26,559.85, offering a small yet positive boost. South of the border, the Dow Jones slipped 44.14 points, ending the session at 42,171.66. The S&P 500 dipped by 1.85 points to land at 5,980.87, while the tech-heavy Nasdaq stood out with a rise of 25.18 points, finishing at 19,546.27.
Focus Shifts to the Fed’s Next Move
All eyes were on the U.S. Federal Reserve, with markets responding to a lack of clarity on how interest rates will shift in the coming months. According to Angelo Kourkafas, a senior strategist at Edward Jones, the Fed is taking a cautious stance as it evaluates how tariffs may impact inflation and economic momentum.
On Wednesday, the central bank held its key rate steady for the fourth consecutive time. However, its updated projections now point to slower economic growth, increased inflation, and slightly higher unemployment by year-end. These estimates were last updated in March—before U.S. President Donald Trump announced a new wave of tariffs.
The tariffs, originally announced on April 2, have been delayed until July 9, giving markets some breathing room. Still, Fed Chair Jerome Powell warned that the current forecast of two rate cuts in 2025 might not hold if conditions change.
“We’re navigating through uncertain waters,” Powell stated. “The economy remains sturdy, so we have the luxury to pause and observe how things evolve.”
Oil Prices Climb Amid Middle East Tensions
Crude oil prices climbed following renewed tension in the Middle East, particularly after Israel launched airstrikes targeting Iranian positions. While global oil supplies have not been significantly affected yet, the geopolitical tensions have added pressure to energy markets.
The August crude contract closed at US$73.50 per barrel, marking a 23-cent increase. Though prices are still around five percent lower than last year, Kourkafas noted that they remain within a familiar range for the past few years.
Investors are hopeful that tensions may ease, but the uncertainty continues to weigh on sentiment.
Canadian Dollar and Commodity Updates
The Canadian dollar weakened slightly, trading at 73.14 cents U.S., down from 73.51 cents U.S. the previous day.
In commodities, natural gas for July rose 14 cents to settle at US$3.99 per mmBTU. Gold saw a modest increase of US$1.20, closing at US$3,408.10 per ounce. Meanwhile, copper for July went up by four cents to hit US$4.85 per pound.
With mixed signals from both central banks and global events, the markets remain on edge, awaiting clearer direction in the weeks ahead.
