Tech shares boost TSX after Trump says he won’t fire Fed chair Powell
By Ragini Mathur
(Reuters) -Canada’s main stock index rose on Wednesday, with technology shares leading the charge, as investors welcomed U.S. President Donald Trump’s assurance that he would not fire Federal Reserve Chairman Jerome Powell.
The Toronto Stock Exchange’s S&P/TSX Composite Index climbed 1% to 24,535.52 points, its highest level since April 3.
Markets this week have grappled with worries about the Fed’s autonomy, as Trump intensified his criticism of Chairman Powell for maintaining current interest rates despite Trump’s vocal demands for cuts.
“Markets are not being controlled by fundamentals for now,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
“It’s not based on fact, it’s primarily based on what comes out of the White House.”
Trump also said he wanted to reach a deal with China where tariffs would not be anywhere near 145%, adding that he would set the terms of a deal if Beijing did not enter talks.
Ten of the eleven major sectors on TSX gained on Wednesday with information technology shares leading the rise, up 5.7%.
E-commerce giant Shopify and electronics manufacturing services company Celestica were among the best performers on TSX.
Metal mining was the only sector that traded in the red after gold prices dipped as worries about global trade tensions eased. The sector was down 2.4%.
Yet NovaGold Resources topped the benchmark index gains by rising 14.2% and extending its previous session’s rise on buying a stake in the Donlin gold project in Alaska from Barrick Gold.
Heavy-weight financials were up 2%.
Among individual stocks, Rogers Communications posted lower-than-expected quarterly subscriber additions on Wednesday, as the wireless giant grapples with a pricing war and strict immigration practices. Its shares, however, were up 2.8%.
Looking ahead, Friday’s Canadian retail sales figures will shed light on consumer spending trends as the country navigates economic uncertainty surrounding U.S. tariffs.
(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)