TORONTO 鈥� Canada's main stock index gained almost 200 points Friday, while U.S. markets were mixed.
The S&P/TSX composite index closed up 197.41 points at 22,269.12.
In New York, the Dow Jones industrial average was up 574.84 points at 38,686.32. The S&P 500 index was up 42.03 points at 5,277.51, while the Nasdaq composite was down 2.06 points at 16,735.02.
U.S. markets pulled up near the end of the day after the S&P 500 and Nasdaq spent most of the day in the red. The latter ended the day nearly flat, while the Dow coasted to gain 1.51 per cent.
After a rally provoked by stellar earnings from AI darling Nvidia last week, investors spent most of the day selling off and rotating into sectors like real estate, energy and utilities, said Brian Madden, chief investment officer with First Avenue Investment Counsel.
鈥淧eople are selling the news in tech and rotating into other things that are more bond sensitive or that may have just been laggards,鈥� he said.
The latest reading on U.S. inflation, the Personal Consumption Expenditures index, came in about as expected Friday.
The report doesn鈥檛 change expectations for interest rate cuts in the U.S. in either direction, said Madden.
Investors have been eyeing a potential start to cuts in the fall, as stronger-than-expected interest rates have tempered expectations for just how many cuts the year will bring.
In Canada, the latest GDP report was softer than expected, and also saw the fourth quarter revised lower.
鈥淵ou鈥檝e got a Canadian economy that鈥檚 really flatlining,鈥� said Madden. Increasingly, the evidence is in favour of the Bank of Canada cutting as early as next week, he said. If not June, then a cut is certain in July, he added.
鈥淭he Canadian GDP data, that's going to be really the last data point the Bank of Canada will have at hand to consider.鈥�
The report tips the chances of a cut higher, said Madden, 鈥渂ut it鈥檚 not a slam dunk.鈥�
With the major banks done reporting earnings, it鈥檚 been a 鈥渕ixed bag,鈥� said Madden. The banks are putting aside money for bad loans as consumer stress rises, but are doing well in their capital markets and wealth management units, he said.
The Canadian dollar traded for 73.33 cents US compared with 73.11 cents US on Thursday.
The July crude contract was down 92 cents at US$76.99 per barrel and the July natural gas contract was up two cents at US$2.59 per 1,000 cubic feet.
The August gold contract was down US$20.70 at US$2,345.80 an ounce and the July copper contract was down six cents at US$4.60 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published May 31, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
