Equities in Canada’s largest market rose Tuesday after the surprise fall in domestic headline inflation in February raised hopes of early interest rate cuts by the Bank of Canada.
The TSX Composite advanced 23.4 points to close Tuesday at 21,860.58.
The Canadian dollar faded 0.17 cents to 73.71 cents U.S.
Most of the 12 subgroups pointed higher on the day, led by consumer discretionary stocks, led in turn by Gildan Activewear, racing $4.96, to 10.8%, to $50.71, while Spin Master shares took on 85 cents, or 2.6%, to $33.80.
Health-care issues were next, with Sienna Senior Living hiking 31 cents, or 2.4%, to $13.41, while Bausch Health Companies took on 24 cents, or 1.9%, to $12.94.
In the consumer staples area, Alimentation Couche-Tard jumped $1.70, or 2.1%, to $82.56, while Empire Company clicked 23 cents higher to $33.37.
Gold weighed things down, though, Torex Gold Resources shedding 65 cents, or 3.5%, to $17.72, while Sandstorm Gold dipped 17 cents, or 2.5%, to $6.54.
In materials, First Majestic Silver sank 43 cents, or 5.7%, to $7.13, while K92 Mining docked 33 cents, or 5.2%, to $6.02.
Industrials were hit, too, with Canadian Pacific sliding $2.62, or 2.2%, to $118.98, while Richelieu Hardware handed over 60 cents, or 1.4%, to $42.62.
On the economic slate, Statistics Canada says the Consumer Price Index rose 2.8% on a year-over-year basis in February, down from a 2.9% gain in January. On a seasonally adjusted monthly basis, the CPI rose 0.1% in February.
ON BAYSTREET
The TSX Venture Exchange skidded 6.04 points, or 1.1%, to 543.28.
Seven of the 12 TSX subgroups moved ahead, led by consumer discretionary stocks gaining 1.5%, while health-care picked up 0.8%, and consumer staples soared 0.7%.
The four laggards were weighed most by gold, trailing 2%, materials, down 1.4%, and industrials, off 0.3%.
Utility stocks were unchanged on the day.
ON WALLSTREET
Stocks rose Tuesday as the Federal Reserve kicked off its two-day policy meeting. Traders also kept an eye on Nvidia following key announcements from the tech giant.
The Dow Jones Industrials popped 320.33 points to 39,110.76.
The S&P 500 index gained 29.09 points to 5,178.51.
The NASDAQ fought its way out of the ditch and gained 63.34 points to 16,166.79.
The central bank is expected to keep rates unchanged Wednesday. However, a recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected.
Chip darling Nvidia climbed 1% — recovering from an earlier loss — as investors evaluated the news from its first-ever GTC Conference. CEO Jensen Huang unveiled Nvidia’s latest artificial intelligence chip, labeled Blackwell, which he touted as a significantly more powerful successor to its chips that power a multitude of AI operations.
Super Micro Computer, a primary vendor for building out Nvidia’s AI servers, dropped nearly 9% on news of a share offering. Shares have ripped 220% higher this year on AI enthusiasm, leading the stock to be added to the S&P 500 on Monday. In another sign that the recent bull run could be slowing down, bitcoin proxy MicroStrategy dropped more than 5%. The stock had more than doubled in 2024 as bitcoin surged to record highs.
Prices for the 10-year Treasury gained ground, lowering yields to 4.30% from Monday’s 4.33%. Treasury prices and yields move in opposite directions.
Oil prices picked up 76 cents to $83.48 U.S. a barrel.
Gold prices dropped $3.50 to $2,160.80.