TORONTO 鈥� Gains in base metal stocks helped lift Canada's main stock index on Friday while U.S. markets also rose, led by tech stocks as the Nasdaq jumped two per cent.聽
Large tech names fuelled the rally after Microsoft and Alphabet reported solid earnings, said Mona Mahajan, senior investment strategist at Edward Jones. Alphabet also announced its first quarterly dividend.聽
The higher interest rate environment means companies with a lot of cash are getting better returns on it and can give some of that back to shareholders, said Mahajan. 聽
There was some concern about what the tech giants鈥� results would hold after Meta鈥檚 earnings and outlook earlier this week didn鈥檛 please investors as much, but those concerns didn鈥檛 pan out, said Mahajan.
鈥淐learly the large-cap tech earnings that came out last night really were very solid,鈥� she said.聽
In New York, the Dow Jones industrial average was up 153.86 points at 38,239.66. The S&P 500 index was up 51.54 points at 5,099.96, while the Nasdaq composite was up 316.14 points at 15,927.90.
The S&P/TSX composite index closed up 83.86 points at 21,969.24.
Friday also brought the U.S. personal consumption expenditure report, which showed inflation remaining stubbornly high in March but wasn鈥檛 much worse than forecast.聽
That鈥檚 the preferred inflation gauge for the U.S. Federal Reserve, said Mahajan.聽
The report was a relief for investors after several recent important economic reports came in stronger than expected, she said, causing markets to push back expectations for rate cuts in the U.S.
鈥淢arkets are still expecting at least just one rate cut from the Fed in September, and potentially from the Bank of Canada as early as June or July,鈥� she said.
鈥淩ate cuts might have been delayed, but they're not fully cancelled.鈥�
The past couple of weeks have reinforced that the path to the Fed鈥檚 target for inflation is going to be a bumpy one, said Mahajan.聽
鈥淚f the other inflation prints were cooler than expected, this one might have rattled the markets more, but because we鈥檝e gotten hotter, this one felt more in line,鈥� she noted.聽
This was a volatile week, and it鈥檚 looking possible that April could be the first down month for Wall St. in a while, Mahajan said. She described it as a 鈥渃ontained鈥� correction, however, and a 鈥渉ealthy part of the process鈥� after a significant rally so far this year.
The Canadian dollar traded for 73.16 cents UScompared with 73.05 cents US on Thursday.
The June crude oil contract was up 28 cents at US$83.85 per barrel and the May natural gas contract was down three cents at US$1.61 per 1,000 cubic feet.
The June gold contract was up US$4.70 at US$2,347.20 an ounce and the May copper contract was up four cents at US$4.56 a pound.
-- With files from The Associated Press
This report by The Canadian Press was first published April 26, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)聽
Rosa Saba, The Canadian Press
