The TMX logo is displayed in Toronto on Wednesday, September 11, 2024. (Photo by Paige Taylor White/The Canadian Press)
The Canadian stock market experienced a slight dip on Monday, with the S&P/TSX composite index closing down 73.75 points at 24,999.79. This followed Prime Minister Justin Trudeau’s announcement of his resignation, a move anticipated by many. Meanwhile, U.S. markets showed mixed performance, with tech stocks bolstering the Nasdaq, which rose 243.30 points to 19,864.98.
Market expert Michael Currie from TD Wealth noted that Trudeau’s departure brought some relief to investors after months of speculation. His resignation also impacts pending policies like the proposed capital gains tax, which faced criticism. The shelving of such tax changes, Currie added, has been favourable for the market, especially for sectors like technology and energy.
In the U.S., large technology companies drove gains, continuing their stronghold from 2024. Microsoft announced plans to invest $80 billion in AI-focused data centres, boosting confidence in chipmakers like Nvidia, which climbed 3.4%. These developments provided a silver lining amid broader market uncertainties.
The Dow Jones industrial average dipped slightly, losing 25.57 points to 42,706.56, while the S&P 500 rose 32.91 points to 5,975.38. Investors are now eyeing the U.S. jobs report due Friday, a critical factor for the Federal Reserve’s upcoming interest rate decision. The Fed has already reduced rates in December and scaled back projections for cuts in 2025, which dampened market optimism.
On the commodities front, oil prices slipped 40 cents to $73.56 per barrel, while natural gas climbed 32 cents to $3.67 per mmBTU. Gold and copper prices moved in opposite directions, with gold declining by $7.30 to $2,647.40 an ounce and copper rising nine cents to $4.16 per pound.
The Canadian dollar showed strength, trading at 69.70 cents U.S., up from Friday’s 69.24 cents U.S., reflecting some resilience despite market turbulence.
Overall, Trudeau’s exit has eased some political uncertainty, with investors focusing on upcoming economic indicators and developments in the U.S. labour market. Tech stocks continue to shine, but the road ahead remains cautiously optimistic as markets grapple with evolving policies and global trends.
