Stock Prices Reverse and Climb

BoC Should Keep Rate Hikes: Macklem

Equities in Canada’s largest market opened higher on Tuesday led by gains in technology and energy stocks after a five-day selloff that was triggered by mounting worries about a global economic downturn.

The TSX Composite regained 162.38 points to open for business Tuesday at 18,489.42.

The Canadian dollar eked up 0.11 cents to 73.04 cents U.S.

The TSX has lost 5.2% so far this month and is headed for a second straight month of decline. This, as worries about the economic impact of central bank tightening overshadowed domestic data showing an easing of inflation pressures.

Bank of Canada Governor Tiff Macklem said on Monday that the central bank must hike interest rates to slow spending and give the economy time to catch up. The central bank has lifted rates by 300 basis points in just six months, with traders pricing in another 50-bps hike next month.

ON BAYSTREET

The TSX Venture Exchange sprang back up 12.85 points, or 2.3%, to 580.24.

All 12 TSX subgroups were positive, with materials riding higher 2.3%, while gold and energy stocks each took on 1.9%.

ON WALLSTREET

Stocks rose Tuesday, as the Dow Jones Industrial Average and S&P 500 bounced back from their lowest closing levels in nearly two years.

The 30-stock index recovered 165.5 points to 29,426.31.

The S&P 500 picked up 29.23 points to 3,684.27

The NASDAQ Composite restocked 134.96 points, or 1.3%, to 10,937.88.

The move comes after five straight days of losses for stocks, with the S&P 500 closing at its lowest level since 2020.

The Dow dropped more than 300 points on Monday, putting it in a bear market after falling more than 20% below its record high. The 30-stock average also posted its lowest closing level since late 2020.

The British pound rebounded slightly after plunging to a record low against the dollar earlier in the week. Sterling traded more than 1% higher at $1.087 per dollar after hitting an all-time low of $1.0382.

Shares of electric vehicle company Lucid popped more than 5% in early trading after Cantor Fitzgerald initiated coverage of the stock with an overweight rating. Cantor analyst Andres Sheppard wrote that Lucid’s cars exhibit longer range and faster charging than its competitors, giving it a key advantage.

Treasury prices lost ground, pushing up yields to 3.96% from Monday’s 3.90%. Treasury prices and yields move in opposite direction.

Oil prices regained $2.15 to $78.86 U.S. a barrel.

Gold prices jumped $9.50 to $1,642.90 U.S. an ounce.