The Toronto Stock Exchange (TSX) rose 122.61 points after the Bank of Canada raised its
benchmark interest rate by 50 basis points.
Canada’s central bank lifted its trendsetting interest rate to 1% from 0.50% previously. It was the
largest rate increase in Canada in 20 years.
The S&P/TSX composite index responded by rallying 122.61 points to 21,838.02 after hitting an
intraday high of 21,888.76.
Canadian technology stocks moved up 1.5% on the day, with Hut 8 Mining (HUT) and
Lightspeed Commerce (LSPD) both up 5%.
Energy stocks were the strongest sector on the TSX, gaining 1.7% on higher crude oil and
natural gas prices as Meg Energy (MEG) rose 5%.
The Canadian dollar was held in check despite the interest rate increase because the change
was widely telegraphed by central bank officials. The dollar traded for $0.7932 U.S.
Financial stocks were one of the few laggards with most Canadian banks lower on the day after
U.S. bank JPMorgan Chase (JPM) reported a 42% drop in quarterly profit as it took a write
down due to its exposure in Russia.
In New York, the Dow Jones industrial average was up 344.23 points at 34,564.59. The S&P
500 index was up 49.14 points at 4,446.59, and the Nasdaq composite was up 272.02 points at
13,643.59.
