A street sign along Bay Street in Toronto's financial district is shown in Toronto on Tuesday, January 12, 2021. THE CANADIAN PRESS/Nathan Denette
In Toronto, the primary stock index rose nearly 200 points on Friday, while American markets showed a mix of gains and losses.
The S&P/TSX composite index concluded the day up by 197.41 points, reaching 22,269.12.
Across the border, the Dow Jones industrial average increased by 574.84 points to 38,686.32. The S&P 500 index gained 42.03 points, closing at 5,277.51, whereas the Nasdaq composite slightly dipped by 2.06 points, ending at 16,735.02.
Despite a mostly downward trend throughout the day for the S&P 500 and Nasdaq, American markets saw a late-day pull-up, with the Dow achieving a 1.51% gain.
Following a surge propelled by strong earnings from Nvidia, investors primarily engaged in selling off tech stocks and redirecting investments towards sectors such as real estate, energy, and utilities, according to Brian Madden, chief investment officer at First Avenue Investment Counsel.
Madden noted that the latest reading on U.S. inflation, the Personal Consumption Expenditures index, met expectations, without significantly altering forecasts for interest rate adjustments.
In Canada, the recent GDP report revealed weaker results than anticipated, with downward revisions for the fourth quarter. Madden suggested that this sluggish performance might prompt the Bank of Canada to consider rate cuts, possibly as soon as the upcoming week or in July.
The mixed earnings reports from major Canadian banks indicate a varied performance, with provisions set aside for bad loans amid growing consumer strain, offset by robust results in capital markets and wealth management, Madden observed.
The Canadian dollar closed at 73.33 cents US, compared to Thursday's 73.11 cents US. Meanwhile, the July crude contract dropped by 92 cents to US$76.99 per barrel, and the July natural gas contract increased by two cents to US$2.59 per 1,000 cubic feet.
The August gold contract declined by US$20.70 to US$2,345.80 an ounce, while the July copper contract dropped by six cents to US$4.60 a pound.
