S&P/TSX Composite and U.S. Markets Experience Friday Gains

On Friday, the S&P/TSX composite index in Canada experienced a notable increase, rising by 175.51 points to close at 25,073.54. This climb was significantly influenced by strong performances in technology and telecom sectors.

Meanwhile, U.S. markets also saw a rally, primarily driven by major technology firms. The Dow Jones industrial average rose 339.86 points, reaching 42,732.13. In addition, the S&P 500 index gained 73.92 points, bringing it to 5,942.47, while the Nasdaq composite surged 340.89 points to 19,621.68, marking a 1.8 percent increase.

This day marked the first time in the past week that markets managed to maintain their gains throughout the trading session. Mike Archibald, vice-president and portfolio manager at AGF Investments Inc., noted that prior days saw strong openings only to later lose momentum. He suggested that the market's stability on Friday should instill some confidence as they look toward the following week.

One contributing factor to this positive market trend was the reelection of Mike Johnson as House speaker, which alleviated some of the uncertainty surrounding Donald Trump's upcoming presidential inauguration. Archibald indicated that Johnson's relationship with Trump could be influencing market sentiment positively.

There was substantial enthusiasm observed in the tech sector, particularly with the Nasdaq's performance driven by key companies in the industry. Stocks like Nvidia increased by 4.5 percent, while Tesla rebounded with an impressive 8.2 percent gain. Other notable movers included Super Micro Computer, which jumped 10.9 percent, and Palantir Technologies, rising by 6.3 percent.

This surge in the tech sector correlates with the ongoing optimism surrounding the growth of artificial intelligence technologies. As the inauguration date approaches, Archibald predicts that sectors like crypto and financials, dubbed "Trump trades," will likely gain traction once again.

In the commodities market, Friday was also positive. Reports of increased economic stimulus initiatives in China provided a boost. However, currency markets remained tense, with the Canadian dollar trading near 69 cents against the U.S. dollar. On Friday, it stood at 69.24 cents, down slightly from 69.36 cents on Thursday.

On the commodities front, the February crude oil contract gained 83 cents to settle at US$73.96 per barrel. Conversely, the February natural gas contract declined by 31 cents, closing at US$3.35 per mmBTU. Additionally, the February gold contract fell by US$14.30 to US$2,654.70 an ounce, while the March copper contract edged up by four cents to US$4.07 per pound.

This report showcases a dynamic day for stock markets in Canada and the U.S., highlighting the influence of major sectors and external factors on market performance.

Stocks, Market, Technology