S&P/TSX Composite Rises Friday While U.S. Markets Experience Tech-Led Rally

On Friday, Canada’s main stock index experienced an increase, primarily driven by strong performances in technology and telecom sectors. This positive trend coincided with a rally in U.S. markets, particularly evidenced by a significant gain in the Nasdaq index, which rose by 1.8 percent.

The S&P/TSX composite index concluded the day with a gain of 175.51 points, reaching a level of 25,073.54.

In New York, the situation was similarly optimistic, with the Dow Jones Industrial Average climbing by 339.86 points to hit 42,732.13. The S&P 500 index also saw a positive turn, up by 73.92 points to 5,942.47, while the Nasdaq composite surged by 340.89 points to settle at 19,621.68.

Market expert Mike Archibald, who is a vice-president and portfolio manager at AGF Investments Inc., noted that this was the first day in about a week where the market was able to maintain its gains after a strong morning opening. He stated, "We've had a lot of days where the market has opened strong or had a nice move in the first part of the day and then sold off later in the day."

Archibald expressed optimism, suggesting that Friday’s performance could boost investor confidence moving into the next week.

A key factor contributing to the market's rise was the reelection of Mike Johnson as House Speaker, which helped alleviate some of the uncertainty surrounding Donald Trump’s upcoming presidential inauguration. Archibald pointed out, "Trump has been a big backer of his, so I think that’s part of the reason that we’ve seen the market lift here into the afternoon."

The growth-focused sectors demonstrated clear optimism, with major increases in technology stocks. For instance, Nvidia stocks rose by 4.5 percent, while Tesla rebounded strongly, gaining 8.2 percent after previous losses. Furthermore, shares of Super Micro Computer surged by 10.9 percent, and Palantir Technologies saw an increase of 6.3 percent.

These movements in big tech stocks highlight ongoing positive sentiments regarding the growth of artificial intelligence technologies. As the inauguration approaches, Archibald anticipates a resurgence in so-called Trump trades, particularly in sectors like cryptocurrency and finance that could begin to regain leadership as January 20 draws nearer.

In addition, commodity markets received a boost on Friday, fueled by news of increased economic stimulus in China. Meanwhile, the Canadian dollar, referred to as the loonie, hovered near 69 cents U.S., amidst ongoing concerns about potential tariffs that Trump might impose. The Canadian dollar traded at 69.24 cents U.S., a slight decrease from Thursday's figure of 69.36 cents U.S.

The analysis of specific commodities revealed that the February crude oil contract rose by 83 cents, reaching $73.96 per barrel. In contrast, the February natural gas contract fell by 31 cents to $3.35 per mmBTU. Furthermore, the February gold contract decreased by $14.30, settling at $2,654.70 per ounce, while the March copper contract experienced a modest increase of four cents, trading at $4.07 per pound.

Overall, the positive sentiments in both Canadian and U.S. markets point to a strengthening outlook, bolstered by advancements in technology and reassurances in political leadership.

Stocks, Markets, Tech