Based on coverage from Yahoo Finance and Investing.com.
Canada's main stock index is riding a wave of optimism, hitting a fresh record high on Monday, thanks to a boost from technology stocks and a positive ripple effect from Wall Street. The S&P/TSX composite index rose by 0.2% to 30,533.91 points, marking its seventh consecutive session of gains. This builds on a 2.4% gain from the previous week, which is quite the winning streak for investors.
The tech sector is leading the charge, with a notable 1% gain. This surge is partly due to the buzz around AMD's new chip-supply partnership with OpenAI, which has been the latest in a series of artificial intelligence deals driving market excitement. Meanwhile, cryptocurrency miner Bitfarms saw its shares soar by 14.7% as Bitcoin flirted with its all-time high. It's a good time to be in tech, it seems.
Materials stocks also had a good day, climbing 1.4% as gold prices hit historic highs. The precious metal is benefiting from its status as a safe haven, especially with expectations that the U.S. Federal Reserve might cut interest rates at its October meeting. This has investors feeling a bit more secure, even as the U.S. government shutdown drags into its sixth day, delaying economic data releases.
Closer to home, Canadian investors are eagerly awaiting domestic employment figures due later this week. Colin Cieszynski, chief market strategist at SIA Wealth Management, pointed out the importance of these numbers, especially given the concerning job data from the past two months. "We're watching closely to see if there's a rebound or if the negative trend continues," he said. The employment figures will be crucial in determining whether the Bank of Canada needs to consider further rate cuts.
The energy sector also contributed to the positive momentum, rising 1.2% after oil prices increased by about 1% on the day. This came as OPEC+ announced a smaller-than-expected production increase for November, easing fears of a global supply glut. However, not all sectors shared in the good fortune. Healthcare stocks took a hit, declining by 1.2%, making them the day's worst performers.
In the U.S., stock futures ticked higher on Monday, with investors maintaining their expectations for upcoming interest-rate cuts, despite the ongoing government shutdown. The absence of official data has led to heightened scrutiny of private economic figures, with analysts warning of "darkening storm clouds" and elevated inflation ahead.
Meanwhile, Constellation Brands is set to report its August quarter earnings after the closing bell on Monday. The alcoholic beverage maker has been grappling with the impacts of rising tariffs on aluminum and broader economic uncertainty, which have affected consumer spending on beers and wines.
In the commodities market, oil prices rebounded sharply after OPEC+ agreed to a smaller-than-expected output increase for November. This decision provided relief to traders who had feared a flood of new barrels would overwhelm fragile demand. As of early Monday, Brent Oil Futures and West Texas Intermediate crude futures both saw significant gains.
In summary, the Canadian stock market is basking in a period of optimism, driven by tech gains and positive signals from the U.S. However, with key employment data on the horizon and the U.S. government shutdown casting a shadow, investors remain cautiously optimistic. It's a dynamic time for markets, with plenty of moving parts to keep an eye on.
