Stocks Perk on Heavy Hike by U.S. Fed

Shopify, Magna Star


Canada's main stock index rose Wednesday, aided by health-care shares, following a highly anticipated interest rate decision from the U.S. Federal Reserve, bent on corralling record inflation.

The S&P/TSX jumped 63.05 points to observe the closing bell Wednesday at 19,611.56.

The Canadian dollar retreated 0.31 cents to 77.55 cents U.S.

Health-care stocks led the attack, with Bausch Health Companies surging 53 cents, or 5.3%, to $10.12, while Canopy Growth picked up 24 cents, or 5.6%, to $4.56.

Among techs Shopify hurtled $26.02, or 6.6%, to $419.06, while Lightspeed Commerce jumped $1.48, or 5.7%, to $27.79.

In consumer discretionary stocks, Magna International leaped $2.71, or 3.7%, to $76.86, while Linamar added $1.85, or 3.4%, to $56.93.

Energy stocks faded somewhat, with Freehold Royalties down 52 cents, or 3.4%, to $14.79, while Cenovus Energy off 89 cents to #27.81.

In the utilities sector, ATCO flopped 56 cents, or 1.3%, to $43.63, while Boralex wilted 47 cents, or 1.2%, to $41.04.

On the economic front, housing starts in Canada jumped by 8% over a month earlier to 287,257 units in May, well above market expectations of 252,600 units, according to the Canada Mortgage and Housing Corporation.

The Canadian Real Estate Association reported home sales recorded over Canadian MLS Systems declined by 8.6% in May.

ON BAYSTREET

The TSX Venture Exchange remained positive 5.58 points to 665.65.

All but two of the 12 TSX subgroups gained ground on the day, health-care stocks haler 3.1%, information technology advancing 2.5%, and consumer discretionary stocks better 1.6%.

The two laggards proved to be energy, retreating 1.2%, and utilities, inching back 0.1%.

ON WALLSTREET

Stocks rallied after the Federal Reserve hiked rates by 75 basis points — its largest increase since 1994 — and signaled it could raise rates by a similar magnitude in July, giving investors confidence the central bank was committed to tamping down inflation.

The Dow Jones Industrials rushed 303.7 points, or 1%, higher to wind up Wednesday at 30,668.53.

The S&P 500 popped 54.51 points, or 1.5%, to 3,789.99.

The NASDAQ Composite jumped 270.81 points, or 2.5%, to 11,099.16.

Boeing and other shares closely linked to economy growth jumped higher on the hope that rates could rise without tipping the economy into a recession. Boeing surged 10%. Regional banks and financials also gained.

Tech shares, which have been beaten-up as the S&P 500 slipped into bear market territory this month, led the market’s bounce with Amazon and Tesla each jumping more than 5% on Wednesday.

Battered travel names staged a comeback as cruise stocks Carnival advanced 2.5% and Norwegian Cruise Line rose about 4.2%, Shares of airline stocks including Delta and United also rose about 2% each

Treasury prices skyrocketed, lowering yields to 3.28% from Tuesday’s 3.47%. Treasury prices and yields move in opposite directions.

Oil prices fell back $3.23 to $115.70 U.S. a barrel.

Gold prices acquired $22.20 to $1,835.70 U.S. an ounce.