Index bounces back from loss
The Canadian Press - May 24, 2024 - Business Buzz

Photo: The Canadian Press

TORONTO — A broad-based rally helped Canada’s main stock index close up more than 100 points Friday to largely recover from losses a day earlier, while U.S. stock markets also climbed.

The S&P/TSX composite index ended up 120.08 points at 22,320.87 to claw back much of the 146-point loss Thursday, though it was still down about the same amount from where it was a week earlier.

In New York, the Dow Jones industrial average was up 4.33 points at 39,069.59. The S&P 500 index was up 36.88 points at 5,304.72, while the Nasdaq composite was up 184.76 points at 16,920.79.

Markets rose to head into the U.S. long weekend as consumer outlook on inflation improved, said Kathrin Forrest, equity investment specialist at Capital Group.

“We saw moderating consumer inflation expectations reflected in the most recent University of Michigan survey,” she said.

“So that was a bit of a sigh of relief after the Fed minutes that we saw earlier in the week, which had indicated some concerns over potentially more sticky inflation and higher for longer policy rates.”

The better outlook on inflation came even as data showed continued strength in the U.S. economy, including durable goods orders and survey data from manufacturers.

The data was in contrast to Canadian retail sales that fell 0.2% in March, weighed down by lower sales at furniture, home furnishings, electronics and appliances retailers, Statistics Canada said Friday.

The numbers underline a widening gap on what markets expect central banks to do, with a 65% chance the Bank of Canada cuts in June but almost no expectations for a Federal Reserve cut this summer. Despite the increasing split, the Canadian dollar still managed to rise Friday, trading for 73.14 cents US compared with 72.98 cents US on Thursday.

The loonie has largely been bouncing around 72 and 73 cents for the past month, down from around the 75-cent mark where it started the year.


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