North American stock markets climb; commodities weaken on Chinese market woes

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North American stock markets gained ground on Wednesday thanks to continued optimism about the strength of the U.S. economy. The S&P/TSX composite index was up 152.39 points at 24,224.90. In New York, the Dow Jones industrial average was up 431.

North American stock markets gained ground on Wednesday thanks to continued optimism about the strength of the U.S. economy.In New York, the Dow Jones industrial average was up 431.63 points to set a new record high at 42,512.00. The S&P 500 index was up 40.91 points at 5,792.04, beating its all-time high set last week, while the Nasdaq composite was up 108.70 points at 18,291.62.

Worries about the health of the Chinese economy sent commodities lower Wednesday. Gold was down and oil continued to tick lower after international benchmark Brent crude briefly topped US$81 per barrel earlier in the week over concerns that escalating tensions in the Middle East could interrupt oil supplies.

“Surprisingly, compared to what I’ve seen historically, geopolitics seems to have less of an impact on the market than it used to,” Zechner said.While a stronger-than-expected U.S. economy has forced traders to lower their expectations for how much the U.S. Federal Reserve might cut interest rates at its next meeting in November – markets are now pricing in an anticipated 25-basis-point cut, as opposed to another half-point cut.

"We know the big tech companies are probably going to be fine for now, as long as they continue with the big AI infrastructure build," he said.

 

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