Canada's main stock index took a sudden surge on Thursday helped along mostly by gains in energy and financials stocks, though a potential hike in U.S. inflation continued raising fears of more big interest-rate hikes in the world's largest economy.
The TSX Composite powered 290.27 points, or 1.6%, to reach noon EDT at 18,496.55.
The Canadian dollar recovered 0.28 cents to 72.65 cents U.S.
Among energy concerns, Advantage Oil gushed 59 cents, or 5.8%, to $10.74, while Peyto Exploration grabbed 83 cents, or 7.1%, to $12.55.
In the banking sector, TD added $2.69, or 3.3%, to $83.67, while Scotiabank jumped $1.79, or 2.8%, to $65.82.
Communications also had a heyday, with BCE taking on $2.14, or 3.8%, to $58.50, while TELUS Corp. leaped 76 cents, or 2.9%, to $27.39.
ON BAYSTREET
The TSX Venture Exchange turned higher 0.73 points to 585.74.
All but one of the 12 TSX subgroups picked up ground by noon hour it had lost in the morning, as energy rumbled 3.8%, financials were higher 2%, and communications prospering 1.9%.
Only gold missed out on all the action, losing 1.9%.
ON WALLSTREET
Stocks rose in volatile trading Thursday, recovering from steep losses earlier in the session, as traders assessed the latest U.S. inflation data and what it means for the Federal Reserve going forward.
The Dow Jones Industrials climbed out of the dungeon in a big way, ballooning 554.35 points, or 1.9%, to 29,765.20
The S&P 500 recovered 51.17 points, or 1.4%, to 3,628.20
The NASDAQ Composite popped 92.77 points, to 10,509.86.
Stocks rebounded after hitting their lowest levels since 2020 led by gains in energy and bank stocks.
Stocks fell to session lows when the September consumer inflation report showed a larger-than-expected increase. The consumer price index increased 0.4% for the month, more than the 0.3% estimate from Dow Jones. On an annual basis, inflation was up 8.2%.
Shares of Chevron gained more than 3% as oil prices spiked, and bank stocks Goldman Sachs hiking 2.9% and JPMorgan rising 4%. A reversal in big tech names such as Apple and Microsoft and a surge in semiconductors Nvidia and Qualcomm also contributed to the move higher.
In addition, investors may be betting that the stronger-than-expected inflation report means price increases will peak soon.
Going forward, investors will be watching the start of earnings season. On Friday, major banks JPMorgan Chase, Wells Fargo, Morgan Stanley and Citigroup all report results.
Treasury prices fell sharply, raising yields to 3.95% from Wednesday’s 3.90%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.73 to $89.00 U.S. a barrel.
Gold prices minimized losses to sit $6.90 lower midday to $1,670.60 U.S. an ounce.
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