A view of Toronto’s Bay Street Financial District, located beside the CN Tower. (Photo credit: Nathan Denette, The Canadian Press)
Canada’s main stock index wrapped up the day in the green, lifted by gains in the basic materials sector, particularly mining and resource stocks. The S&P/TSX composite index closed up 68.75 points to 26,972.32, reflecting cautious optimism in the market.
Meanwhile, U.S. stock markets also saw a healthy boost, mainly fueled by a surge in technology shares. The Dow Jones Industrial Average rose 217.54 points to 44,458.30, while the S&P 500 gained 37.74 points to reach 6,263.26. The Nasdaq composite climbed a solid 192.88 points, ending the day at a new record high of 20,611.34.
Tech Stocks Push Wall Street to New Highs
The jump in big tech shares came as investors reacted to the extension of the U.S. tariff deadline. President Donald Trump had previously set Wednesday as the cut-off date for trade deals with other countries, or else face sharp increases in import tariffs. However, the White House pushed the deadline to August 1, giving negotiators more time.
“Markets are responding well to the tariff delay. There’s still uncertainty, but for now, they're holding near record highs,” said Anish Chopra, Managing Director at Portfolio Management Corp.
So far, only two deals have materialized — one with the United Kingdom and another with Vietnam. On Tuesday, Trump also floated the idea of slapping a 50% tariff on copper imports, though no further details were offered. Copper prices dipped slightly on Wednesday after spiking earlier.
“If copper tariffs do come into effect, U.S. firms might shift to local copper, which could hurt countries like Canada,” Chopra added.
Pharma Deal Grabs Investor Attention
In corporate news, Merck announced a major acquisition — it’s buying Verona Pharma, a British company specializing in respiratory treatments, for about $10 billion. The news sent Verona’s stock soaring 20.6%, while Merck shares rose nearly 3%.
“Mergers and acquisitions like this give the market another positive nudge,” Chopra said.
Investors Eyeing Third-Quarter Forecasts
As the earnings season approaches, investors are now focusing on how companies will address the economic impact of tariffs in their quarterly forecasts. Chopra noted that these reports will give insights into company-specific outlooks, which in turn can help understand broader trends like GDP growth or a global economic slowdown.
Commodities and Currency
- The Canadian dollar traded slightly lower at 73.03 cents US, down from 73.12 cents US the day before.
- Oil prices were mostly flat, with August crude up just five cents to US$68.38 per barrel.
- Gold inched up US$4.10, ending at US$3,321.00 an ounce.
