TSX rises on base metals while Fed rate outlook shifts amid Trump signals and AI momentum
Thursday’s market action underscored investor sentiment as big tech rallied and the S&P 500 closed near a record high, driven by strong gains in artificial intelligence-linked stocks.
According to BNN Bloomberg, the S&P 500 rose 0.8 percent to close at 6,141.02—just 0.05 percent below its all-time closing high from February.
The index briefly surpassed the milestone intraday, driven by continued momentum in chipmakers and tech firms.
The Nasdaq composite climbed 1 percent to 20,167.91, and the Dow Jones Industrial Average advanced 0.9 percent to 43,386.84.
Nvidia added 0.5 percent and remains the most valuable company in the US stock market. As per the report, the stock has jumped 61 percent since April 8, well ahead of the S&P 500’s 23 percent gain.
Super Micro Computer, another AI-linked company, rose 5.7 percent, bringing its gains since April 8 to 55 percent.
In Canada, the S&P/TSX composite index gained 185.63 points to 26,751.95, lifted by strength in base metals, according to BNN Bloomberg.
The Canadian dollar traded at 73.31 cents US, up from 72.80 cents US on Wednesday.
McCormick led sector-specific momentum, rising 5.3 percent after reporting a better-than-expected quarterly profit.
The spice and flavouring company also raised its full-year earnings forecast, including plans to counter increased costs from tariffs.
Micron Technology posted stronger-than-expected quarterly profit and revenue, but its stock closed 1 percent lower.
CEO Sanjay Mehrotra said AI-driven demand for memory is growing, and the company expects higher profits in the current quarter. The stock traded mixed throughout the session.
Economic signals in the US pointed to mixed conditions.
A report cited by BNN Bloomberg showed that durable goods orders—such as washing machines and other long-lasting items—grew more than economists had forecast.
Another report showed a decline in unemployment claims, indicating potential labour market strength.
However, revised data showed the US economy contracted more than previously estimated in the first quarter of 2025. Economists attributed the drop to pre-tariff inventory builds, expecting stronger growth in subsequent months.
Treasury yields fluctuated during the day. The 10-year Treasury yield eased to 4.24 percent from 4.29 percent, while the two-year yield dropped to 3.71 percent from 3.74 percent.
Market reaction followed a Wall Street Journal report that US President Donald Trump could announce his nominee for Federal Reserve chair earlier than expected, potentially undermining the Fed’s independence.
Brian Jacobsen, chief economist at Annex Wealth Management, said, “Yields fell, the dollar weakened, and break evens rose, all suggesting that a puppet of the White House in the seat of the Chair could be bad for inflation.”
He noted that policy decisions would still rest with the broader committee, which could keep any new chair in check if needed.
Current Fed Chair Jerome Powell has stated that the central bank will monitor the economic impact of tariffs before adjusting interest rates.
Trump continues to push for rate cuts and has repeatedly criticised Powell. Two Trump-appointed Fed officials have suggested they would support cuts as early as the July meeting.
Gold prices also rose, with the August contract up US$4.90 to US$3,348.00 an ounce. Crude oil gained 32 cents to US$65.24 per barrel.
Global markets were mixed. Japan’s Nikkei 225 rose 1.6 percent, while South Korea’s Kospi declined 0.9 percent.
