Energy stocks help nudge S&P/TSX composite higher as indexes ‘tread some water’

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Craig Fehr,Industrial Sectors,S&P 500 Index

Energy equities nudged up Canada’s main stock index on Tuesday, balancing out a slight drop in the technology and industrial sectors.

In New York, the Dow Jones industrial average was up 56.76 points at 38,834.86. The S&P 500 index was up 13.80 points at 5,487.03, while the Nasdaq composite stayed virtually flat with a 5.21-point increase to 17,862.23.

The S&P 500 and Nasdaq both hit record closing highs on Tuesday, continuing a trend they kicked off near the start of the year. The former is up about 15 per cent since Jan. 1, the Nasdaq about 19 per cent. The S&P/TSX composite has climbed less than four per cent year to date. The relative torpor of Canadian stocks this week — and this year — stems in part from its small slice of the global tech market.“The majority of the leadership in the equity market is coming from technology, and obviously the TSX has an extremely small weight to technology compared to something like the S&P 500,” Fehr said.

“The lift in energy is really tied to the fact that oil prices did get a bit of a bid today,” Fehr said. The August gold contract was up US$17.90 at US$2,346.90 an ounce and the July copper contract was up four cents at US$4.49 a pound.Amid the lingering uncertainty surrounding whether the Federal Reserve will cut interest rates, markets are grappling with the question of whether such a move can even materialize in 2024. Joining Market Domination to shed light on the outlook for the Fed's rate cut prospects is Jim Bullard, the former President of the St. Louis Fed.

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