AUS
NZ
UK
CA
USA
IND
Canada's main stock index experienced a rise on Monday, driven by gains in the real estate and utilities sectors stocks, which offset losses in energy shares. This occurred while markets assessed the implications of U.S. President Joe Biden's withdrawal from the election race.
The TSX Composite Index rebounded, adding 99.31 points to reach 22,789.70.The Canadian dollar decreased by 0.28 cents, settling at 72.67 cents U.S.
In corporate news, Air Canada (TSX:AC) adjusted its full-year core profit forecast due to over-capacity in certain markets affecting its pricing power. As a result, Air Canada's shares declined by 71 cents, or 4.1%, to $16.36 by noon EDT.
Shares of Sleep Country Canada (TSX:ZZZ) surged $7.52, or 27.6%, to $34.80 following Fairfax Financial's agreement to acquire the retailer in a deal valued at $1.7 billion.
The TSX Venture Exchange lost 1.19 points, pausing at 578.90 for lunch.
Among the 12 TSX subgroups, all but three advanced, with real estate stocks leading the way with a 1.4% increase, followed by health care and utilities, each gaining 1%. The three decliners were consumer staples, which slid 0.4%, while materials and gold each dipped 0.2%.
On Wall Street, the S&P 500 rose on Monday, supported by a rebound in tech shares, following the broad market index's worst weekly loss since April.
- The Dow Jones Industrials inched up 11.52 points to 40,299.05.
- The broader market index gained 31.11 points to 5,536.11.
- The NASDAQ soared 154 points to 17,880.94.
Nvidia saw a 4% increase, recovering some of last week's 8% decline. Other major technology stocks, including Meta Platforms, Alphabet, and Apple, each rose by more than 1%. However, Crowdstrike was the worst performer in the S&P, dropping nearly 11% and continuing last week's nearly 18% loss.
Tech stocks were under pressure last week as investors rotated into smaller names, resulting in a nearly 2% decline in the S&P 500 and more than a 3% drop in the NASDAQ.
This week, traders are also focusing on the U.S. political landscape after President Joe Biden exited the presidential race on Sunday and endorsed Vice President Kamala Harris. Since Biden's challenging debate performance in June, many analysts have seen an increasing likelihood of a victory by former President Donald Trump in November.
Earnings and central bank policy are also in the spotlight. Traders are pricing in nearly a 93% chance of the Federal Reserve cutting interest rates during its September meeting.
Prices for the 10-year Treasury waned, pushing yields up to 4.27% from Friday’s 4.24%. Treasury prices and yields move inversely.
- Oil prices slipped by 33 cents to $79.80 U.S. per barrel.
- Gold prices declined by $11.10 to $2,388.
