Canada’s primary stock market index surged above 30,000 points for the first time, driven by robust performances in the energy and base metal sectors, setting a new record. In contrast, U.S. stock markets displayed mixed trends during late-morning trading on Tuesday.
The S&P/TSX composite index initially crossed the 30,000 mark in early trading before experiencing a slight dip later in the day. Brian Madden, the Chief Investment Officer at First Avenue Investment Counsel, attributed the milestone to a widespread market rally. He highlighted the significant impact of gold on the index’s performance this year and noted that strength in the energy and financial sectors contributed to the upward movement.
Madden expressed anticipation for surpassing such thresholds and emphasized the importance of focusing on long-term investment goals amid the market’s momentum. Meanwhile, Brian Belski, Chief Investment Strategist at BMO Capital Markets, acknowledged the surprising nature of the stock market’s growth amidst concerns over tariffs and economic downturn. He emphasized the resilience of Canadian companies focusing on fundamentals as a key driver for the TSX’s record highs.
In New York, the Dow Jones industrial average rose by 66.27 points to 46,381.54, while the S&P 500 index increased by 29.39 points to 6,693.75, and the Nasdaq composite surged by 157.50 points to 22,788.98. Notably, chipmaker Nvidia witnessed a 3.9% spike following its announcement of a $100 billion investment in OpenAI, which owns the AI chatbot ChatGPT. This strategic partnership aims to enhance OpenAI’s computing power with at least 10 gigawatts of Nvidia AI data centers.
Ian Chong, a Portfolio Manager at First Avenue Investment Counsel, highlighted the significant market impact of Nvidia’s investment and its positive ripple effect on related stocks. Additionally, he noted the rising demand in U.S. utilities due to increased electricity requirements for data centers. Oracle Corp. and Apple Inc. also contributed to the market surge, with Oracle gaining 6.3% and Apple shares rising by 4.3% on the back of strong demand for the new iPhone 17 and growth potential in the Chinese market.
The tech sector’s strength extended to Canada, with Shopify Inc. witnessing a 2.7% increase in its share value. Furthermore, the surge in gold prices played a crucial role in bolstering the TSX, with the December gold contract rising by $69.30 to $3,775.10 per ounce on Monday. Mining companies such as Barrick Mining Corp. and Kinross Gold Corp. experienced notable gains, with Barrick Mining Corp. rising by 7.4% after announcing a significant gold production project in Nevada.
Ian Chong highlighted the recent performance of gold miners, noting their catch-up growth and robust operational performance as contributing factors to their current success.