Toronto’s Bay Street Financial District is pictured beside the CN Tower on Friday, August 5, 2022. (The Canadian Press/Nathan Denette)
Canada’s main stock index gained over 100 points on Wednesday, driven by strength in technology and base metals. Meanwhile, U.S. markets ended on a mixed note as investors reacted to fresh tariff concerns.
The S&P/TSX composite index closed up 124.38 points at 25,328.36, while the Dow Jones Industrial Average fell 188.04 points to 43,433.12. The S&P 500 added 0.81 points, closing at 5,956.06, and the Nasdaq composite gained 48.88 points, finishing at 19,075.26.
Markets started strong in the morning but lost momentum following remarks from U.S. President Donald Trump regarding tariffs. His comments created uncertainty, particularly about duties on Canadian and Mexican goods, set to take effect next week.
Tech Stocks and Nvidia Boost Nasdaq
Nvidia shares rose 3.7% ahead of its earnings release, helping to lift the Nasdaq. The semiconductor giant has been a key driver of market optimism, fueled by growing investment in artificial intelligence. However, analysts warn that while Nvidia’s results are expected to be strong, its future outlook may not be as bullish.
“We’re going to see how much money is really flowing into AI and chips,” said Allan Small, senior investment adviser at iA Private Wealth. Investors are also keeping an eye on China’s DeepSeek, a rising AI competitor, which could influence Nvidia’s market position.
Bank Earnings Show Resilience
National Bank reported higher first-quarter profits, making it the latest Canadian bank to post solid earnings. “Canadian banks, like their U.S. counterparts, are holding up well,” said Small.
Commodities and Currency Market Update
The Canadian dollar weakened slightly, trading at 69.74 cents US, down from 69.99 cents US on Tuesday.
Commodity prices showed mixed results:
- Crude oil fell 31 cents to US$68.62 per barrel.
- Natural gas declined 17 cents to US$3.96 per mmBTU.
- Gold climbed US$11.80 to US$2,930.60 an ounce.
- Copper rose six cents to US$4.59 per pound.
