TORONTO — Strength in technology and utility stocks helped Canada's main stock index inch higher Wednesday, while U.S. stock markets rallied to new record highs after a pair of reports on inflation and retail sales.
The U.S. inflation report came in slightly lower than expected, said Dutrisac. That’s likely good news for the U.S. Federal Reserve, he added. The central bank has been holding its key interest rate steady as the economy remains resilient, so any data that indicates cooling gives investors hope for cuts in the future.
In New York, the Dow Jones industrial average was up 349.89 points, or 0.9 per cent, at 39,908.00. The S&P 500 index was up 61.47 points, or 1.2 per cent, at 5,308.15, while the Nasdaq composite was up 231.21 points, or 1.4 per cent, at 16,742.39.Investors have been recalibrating their expectations for how many cuts the U.S. central bank could make this year. But more data is needed to “firmly establish a timeline,” Dutrisac added.
However, the closer it gets to the November U.S. election, the longer investors may have to wait, said Dutrisac, as the Fed likely won’t want to lower rates around that time.