TSX Soars on Health, Tech Strength

Equity markets emerged from Wednesday’s session in the green, as the market looked ahead to possible interest rate cuts down the road.

The S&P/TSX Composite Index finished in the green 74.21 points to close Wednesday at 21,961.55.

The Canadian dollar captured 0.16 cents to 72.86 cents U.S.

Tech stocks proved the top gaining group, with HUT 8 Mining rocketing $1.32, or 9.6%, to $15.03, while Bitfarms hiked 23 cents, or 7.4%, to $3.33.

Health-care issues gathered steam, with Bausch Health hiked 26 cents, or 3.1%, to $8.66, while Tilray jumped four cents, or 1.7%, to $2.45.

In real-estate, First Services climbed $4.19, or 2%, to $210.38, while First Capital REIT units picked up 27 cents, or 1.9%, to $14.81.

Energy stepped back, as Enerplus sinking 93 cents, or 3.4%, to $26.78, while Tourmaline Oil gave up $1.45, or 2.2%, to $65.78.

In consumer discretionary stocks, Dollarama waned $5.14, or 4.1%, to $120.54, while Sleep Country dozed 39 cents, or 1.4%, to $27.08.

In materials, Filo Mining pulled back 64 cents, or 2.6%, to $23.72, while Ivanhoe Mines gave back 44 cents, or 2.5%, to $17.35.

ON BAYSTREET

The TSX Venture Exchange recovered 6.09 points, or 1.1%, to 583.25.

Seven of the 12 subgroups were positive by the close, led by health-care stocks, up 1.5%, information technology, up 1.4%,, and real-estate, ahead 1.1%,

The five laggards were weighed most by energy, 0.8% less energetic, consumer discretionary stocks, falling 0.7%, and materials, off 0.2%.

ON WALLSTREET

The S&P 500 jumped to a record Wednesday after the Federal Reserve’s latest policy announcement and May inflation data pointed to easing pricing pressures.

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The Dow Jones Industrials regressed 35.21 points to 38,712.21.

The much broader index held onto gains of 45.69 points to 5,421.01, a fresh record.

The NASDAQ leaped 264.89 points, or 1.5%, to 17,608.44, also a new high.

More than two out of every three names in the 30-stock Dow are tracking to end in the red, while the index as a whole is trading around flat. Salesforce, Nike and Chevron led the average lower with declines of more than 2% each.

Just seven names were able to break from the pack. Apple was the big outperformer within the average, helping buoy the index with a rally of more than 6%

The Fed kept interest rates unchanged, as was widely expected. The central bank also indicated progress has been made on the inflation front, noting: “In recent months, there has been modest further progress toward the Committee’s 2 percent inflation objective.”
However, the Fed’s latest projections, also released Wednesday, showed the central bank only sees one rate cut taking place this year. That’s down from three expected at the start of 2024.

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 scored big gains, lowering yields to 4.33% from Tuesday’s 4.40%. Treasury prices and yields move in opposite directions.

Oil prices took on 49 cents to $78.37 U.S. a barrel.

Gold prices were positive $9.20 to $2,335.80