Canada’s primary stock index broke the 30,000 mark for the first time driven by robust performances in the energy and base metal sectors, reaching record levels. In contrast, U.S. stock markets showed mixed results during late-morning trading on Tuesday.
The S&P/TSX composite index surged past 30,000 early in the trading session before retracting slightly later in the day. Brian Madden, the chief investment officer at First Avenue Investment Counsel, attributed the index’s milestone to a widespread market rally, with notable contributions from the energy and financial sectors.
Madden highlighted the impact of gold on the index’s performance and expressed optimism about the market’s momentum, emphasizing the focus on long-term investment goals. On the other hand, Brian Belski, the chief investment strategist at BMO Capital Markets, acknowledged the surprising market boom amidst concerns over tariffs and recession fears.
Belski emphasized that the stock market is distinct from the economy, crediting the success of Canada’s market to resilient companies emphasizing fundamentals. He anticipated continued highs for the TSX and other North American markets. In New York, the Dow Jones industrial average rose by 66.27 points, while the S&P 500 and Nasdaq composite also showed gains.
Nvidia’s announcement of a $100 billion investment in OpenAI, the owner of ChatGPT, led to a 3.9% surge in its shares, propelling it as Wall Street’s most valuable company. This move was predicted to significantly impact the markets, with ancillary stocks benefiting from the news. The demand for electricity by new data centers also boosted U.S. utilities’ shares.
Oracle Corp. and Apple Inc. also saw significant stock increases, driven by positive news related to TikTok and strong demand for the latest iPhone model. The tech sector’s strength extended to Canada, with Shopify Inc. experiencing a 2.7% rise in shares. Additionally, the surge in gold prices has been a key driver behind the TSX’s recent strength.
Notably, Barrick Mining Corp. and Kinross Gold Corp. witnessed notable stock increases following positive developments in their respective projects. The gold sector, which had previously lagged behind, is now catching up and showing strong performance.