The Canadian stock market saw a significant increase on Monday, with the S&P/TSX composite index rising nearly 300 points to 21,848.59. This rally was fueled by gains in most sectors outside of technology, particularly in the energy sector, which saw a more than three per cent increase. The jump in the Canadian market came after a period of pressure, making it a strong rebound compared to recent weeks. Investors may be optimistic about the upcoming release of Canada’s latest consumer price index report, which could provide positive news on the inflation front.
In contrast, U.S. stock markets were mixed on Monday, with the Dow Jones industrial average rising while the S&P 500 and Nasdaq composite both experiencing losses. Technology stocks related to computer chips were a major drag on the market, with Nvidia Corp. dropping over eight per cent. This could be attributed to profit-taking and a market reset after recent strong gains. The tech sell-off also affected the Information technology index on the TSX, which was down, while other sectors such as financials, telecoms, and utilities saw gains.
The decline in technology stocks and profit-taking may have also impacted the cryptocurrency market, with bitcoin down over seven per cent. The Canadian dollar remained steady against the U.S. dollar, trading at 73.19 cents. The loonie has maintained its value following the Bank of Canada’s interest rate cut in June, with potential for continued rate cuts in July depending on inflation data. In the commodities market, the August crude oil contract was up, as well as the natural gas contract. Gold and copper contracts also saw increases in their prices.
Overall, the Canadian stock market demonstrated a strong rally on Monday, with the S&P/TSX composite index posting significant gains. This was in contrast to the mixed performance of U.S. stock markets, where technology stocks were a major drag. The Canadian dollar remained stable against the U.S. dollar, with potential for further rate cuts by the Bank of Canada depending on inflation data. Commodities such as crude oil, natural gas, gold, and copper also experienced price increases. Investors will be watching closely for the release of Canada’s latest consumer price index report for further insights into the market’s direction.
