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TSX Rally Continues

Equities in Canada’s largest centre gained on Wednesday after U.S. consumer prices data showed signs of cooling inflation ahead of the Federal Reserve's rate verdict later in the day, while rising commodity prices also provided support.

The S&P/TSX Composite Index hiked 143.85 points to pause for lunch Wednesday at 21,031.19.

The Canadian dollar surged 0.03 cents to 73.02 cents U.S.

Canadian utility and real estate shares are likely to be among the biggest beneficiaries of the Bank of Canada's move to begin cutting interest rates, according to investors.

In corporate news, National Bank of Canada bottomed the TSX index, down $6.13, or 5.3%, to $110.21, as it plans to acquire Alberta-based rival Canadian Western Bank for $5 billion. Canadian Western Bank's shares soared $17.51, or 70.3%, to $42.40.

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Dollarama slipped $2.21, or 1.8%, to $123.47 as the discount store posted lower first-quarter comparable store sales, even as it posted an increase in first-quarter sales and profit.

Bank of Canada Governor Tiff Macklem is expected to speak at the Conference of Montreal at 3:30 p.m. ET.

ON BAYSTREET

The TSX Venture Exchange recovered 7.65 points, or 1.3%, to 582.88.

All 12 subgroups were positive in the first hour, led by real-estate, up 1.4%, consumer discretionary stocks, ahead 1.3%, and information technology, up 1.1%.

ON WALLSTREET

Stocks jumped on Wednesday after inflation slowed in May, sending yields tumbling before the Federal Reserve’s June interest rate decision.

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The Dow Jones Industrials restocked 101.69 points to move into noon hour at 38,849.11.

The S&P 500 index popped 60.07 points, or 1.1%, to 5,435.39, a fresh record.

The NASDAQ leaped 302.45 points, or 1.7%, to 17,645.99, also a new high.

Nvidia, Broadcom and other technology shares also gained as the cooler inflation figures renewed investors’ risk appetites.

Shares of Oracle jumped 15% as traders fixated on the software maker’s newly announced cloud deals with Google and OpenAI, overlooking misses in the company’s latest quarter.

The consumer price index was unchanged for the month of May, lower than the Dow Jones estimate for a 0.1% monthly increase. Year over year, the inflation yardstick increased 3.3%, which also came in below expectations and represented a slowing from the prior 3.4% pace.

Monthly and yearly numbers for core CPI, which excludes the volatile prices associated with energy and food, were also lower than anticipated.
Prices for the 10-year Treasury hiked, lowering yields to 4.27% from Tuesday’s 4.40%. Treasury prices and yields move in opposite directions.

Oil prices inched up 28 cents to $78.18 U.S. a barrel.

Gold prices were brighter $24.30 to $2,350.70