TORONTO 鈥� sa国际传媒's main stock index rose almost 100 points Thursday, led by gains in energy and financial stocks, while U.S. markets were mixed.聽
The S&P/TSX composite index was up 94.32 points at 19,913.17.
In New York, the Dow Jones industrial average was up 269.76 points at 34,122.42. The S&P 500 index was up 19.58 points at 4,396.44, while the Nasdaq composite was down 0.42 points at 13,591.33.
All eyes were on U.S. economic growth Thursday, as first-quarter GDP was revised up sharply to a two per cent annual rate.聽
鈥淭hat caused a major temper tantrum in the bond market,鈥� said Brian Madden, chief investment officer with First Avenue Investment Counsel. The news could mean inflation will be around for longer, putting the likelihood of more Federal Reserve interest rate hikes higher, he said.聽
鈥淪o that鈥檚 causing a sell-off in bonds,鈥� he said.聽
That鈥檚 likely also why the Nasdaq underperformed Thursday, as tech stocks tend to be more sensitive to interest rate expectations, said Madden, though he noted trading volumes were also low for the day.
Federal Reserve chairman Jerome Powell has made it clear more rate hikes are likely coming from the central bank in the face of continued strength in the economy. At a monetary policy conference Wednesday alongside other central bank leaders, Powell stressed the continued hotness in the labour market, and agreed with other leaders that the inflation fight is not yet over.聽
Markets are currently pricing in an interest rate hike in July, but are less certain about what comes after that, said Madden.
鈥淭he market鈥檚 been playing chicken with 鈥� Powell for a year and a half,鈥� he said.聽
But 鈥渉ope is not a good strategy,鈥� said Madden, 鈥渁nd many investors are hoping for rate cuts.鈥�
鈥淧owell鈥檚 saying you鈥檙e not getting them, yet they continue hoping and then slowly sort of coming around to the reality that they're not coming, at least not soon.鈥�
On Friday, Canadian investors will get fresh GDP data as well as a business outlook survey from the Bank of sa国际传媒. Meanwhile, the next major milestone on the horizon will be the onset of U.S. second-quarter earnings in around two weeks, said Madden.聽
The Canadian dollar traded for 75.44 cents US compared with 75.45 cents US on Wednesday.
The August crude oil contract was up 30 cents at US$69.86 per barreland the August natural gas contract was up three cents at US$2.70 per mmBTU.
The August gold contract was down US$4.30 at US$1,917.90 an ounceand the September copper contract was down four cents at US$3.70 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published June 29, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
