Equities in Canada’s largest centre jumped toward the heavens on Wednesday, buoyed by a rise in oil prices and easing of coronavirus-driven lockdowns in some countries.
The S&P/TSX Composite Index popped 429.82 points, or 2.9%, to finish Wednesday at 15,228.11.
The Canadian dollar increased 0.56 cents to 71.99 cents U.S.
Among the energy entries rumbling higher, Baytex Energy gathered seven cents, or 18.4%, to 45 cents, while ShawCor raced 28 cents, or 16.9%, higher to $1.94.
In the financial sector, Industrial Alliance spiked $5.01, or 11.9%, to $47.13, while Home Capital Group gained $1.95, or 11%, to $19.61.
Consumer discretionary rounded out the top three subgroups, with Sleep Country jumping $1.52, or 12.4%, to $13.37, while Linamar collected $3.60, or 11.9%, to $33.78.
Consumer staples faltered a bit, though, with Loblaw down $2.89, or 3.9%, to $70.48, while Empire Company ditched 64 cents, or 2%, to $31.17.
Gold suffered, with Barrick Gold doffed 92 cents, or 2.4%, to $36.81, while Alamos Gold lost two cents, or 0.2%, to $11.43.
ON BAYSTREET
The TSX Venture Exchange gained 6.47 points, or 1.4%, to 477.36.
All but two of 12 TSX subgroups gained on the day with energy climbing 13.2%, financials up 4.2%, and consumer discretionary stocks up 3.4%.
The two laggards were consumer staples, off 1.5%, and gold, dulling in price 0.7%.
ON WALLSTREET
Stocks jumped Wednesday on the back of positive data from a potential coronavirus treatment from Gilead Sciences, while investors digested a sharp drop in U.S. economic activity.
The Dow Jones Industrial Average popped 532.31 points, or 2.2%, to 24,633.86. The Dow is up 12.4% for April and is headed for its biggest monthly gain since 1987.
The S&P 500 vaulted 76.12 points, or 2.7%, to 2,939.51. Wednesday’s gains put the S&P 500 up more than 13% for the month. That would be the index’s biggest one-month gain since 1974.
The NASDAQ Composite screamed higher 306.98 points, or 3.6%, to 8,914.71. The major averages held onto their gains after the Federal Reserve pledged to keep rates lower for as long as needed.
A study of Gilead’s remdesivir drug conducted by the National Institute of Allergy and Infectious Diseases met its primary endpoint, the drugmaker said, lifting expectations for a potential coronavirus treatment.
Gilead also released the results of its own study, which showed improvement in patients taking remdesivir to treat the virus. Gilead shares jumped 5.7% on the day.
Sentiment was also lifted as Alphabet shares gained 8.9% after the tech giant reported a revenue growth decline that was less steep than forecast. The company’s YouTube ad revenues also beat expectations.
Other mega-cap tech stocks such as Facebook climbed 6.2%. Amazon gained 2.5% while Apple advanced 3.3%. The S&P 500 tech sector closed 0.3% higher for the year, erasing its earlier losses for 2020.
The Gilead news along with the strong move higher from Alphabet offset news of a steep drop in U.S. economic activity. U.S. Gross Domestic Product shrank by 4.8% in the first quarter for the country’s biggest contraction since the financial crisis.
The Fed kept interest rates at the near-zero bound on Wednesday, noting it will maintain its historically aggressive stance for as long as the economy needs it.
Prices for the 10-Year Treasury gained, lowering yields to 0.61% from Tuesday’s 0.66%. Treasury prices and yields move in opposite directions.
Oil prices soared $3.03 to $15.37 U.S. a barrel.
Gold prices recovered seven dollars to $1,729.20 U.S. an ounce.
