S&P/TSX Composite closes higher as Sept Fed hike bets ease
S&P/TSX Composite rose 1.5% to 36,633 on eased expectations for a September US Fed rate hike after Fed Governor Waller signaled patience. Bond yields retreated and banks, miners and tech advanced.
The S&P/TSX Composite Index rose 1.5% to close at 36,633 s as bets on a US Fed rate hike in September eased.
US Fed Governor Waller said that he was inclined to be patient on monetary policy while monitoring whether price pressures continue to ease.
Following his comments, markets trimmed expectations for a Fed rate hike, while both Canadian and US government bond yields retreated from their 2025 highs.
Banks advanced, with RBC up 1.6% and both BMO and CIBC gaining 1.8%.
Gold prices rose, driving miners higher.
Agnico Eagle jumped 5%, Barrick gained 3.1%, and WPM added 3.7%.
Technology stocks posted sharp gains amid a rally in US hyperscalers.
Shopify rose 2.3%, while Celestica soared 11.3% as hyperscaler capital expenditure continued to fuel rapid expansion in high-performance AI computing and enterprise hardware.
Meanwhile, despite the BoC keeping rates unchanged on Wednesday, Governor Macklem said policymakers were prepared to raise rates if inflation remained elevated.