Equities Rumble in First Hour

Canada's main stock index hit one-week high at the open on Tuesday, boosted by technology stocks, as a softer U.S. inflation reading raised hopes of the U.S. Federal Reserve shifting to smaller rate hikes.

The TSX Composite climbed 301.08 points to begin Tuesday at 20,320.78.

The Canadian dollar regained 0.51 cents at 73.88 cents U.S.

Meanwhile, the Bank of Canada is trying to raise rates enough to tame inflation without forcing the economy into a deep recession, Governor Tiff Macklem said on Monday, but the greater risk of the two is sticky inflation, which would require "much higher" rates.

On the corporate side, TC Energy said it had cleaned up almost 2,600 barrels of oil from the largest U.S. crude spill in nearly a decade, but the timetable to restart the Keystone Pipeline following its rupture last week remained unclear.

Crypto miner Hut 8 Mining appointed a new chief financial officer on Monday after markets closed.

ON BAYSTREET

The TSX Venture Exchange restocked 11.03 points, or 1.9%, to 584.92.

All 12 subgroups gained ground, with information technology springing 4.2%, gold, brighter by 3.3%, and materials, up 3.2%.

ON WALLSTREET

Stocks jumped Tuesday after a lighter-than-expected consumer prices report for November raised expectations that inflation is peaking.

The Dow Jones Industrials rocketed 431.31 points, or 1.3%, to 34,436.35.

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The S&P 500 gathered 89.91 points, or 2.3%, to 4,080.47

The NASDAQ Composite Index surged 346.23 points, or 3.1%, to 11,489.97.

Tech shares, which have been hit the hardest from rising inflation and rates in 2022, led the gains Tuesday. Apple, Microsoft, Amazon and Alphabet all jumped more than 3%. Netflix also added 3%. Tesla gained nearly 3%.

The consumer price index rose just 0.1% from the previous month, and increased 7.1% from a year ago, the U.S. Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month increase. Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.

Prices for the 10-year Treasury were up sharply, lowering yields to 3.44% from Monday’s 3.62%. Treasury prices and yields move in opposite directions.

Oil prices picked up $1.84 to $75.01 U.S. a barrel.

Gold prices surged $42.10 to $1,834.40 U.S. an ounce.