TORONTO — Canada's main stock index rose Friday, led by strength in technology and telecom stocks, while U.S. markets rallied, led by major tech names as the Nasdaq gained 1.8 per cent.
The S&P/TSX composite index closed up 175.51 points at 25,073.54.
In New York, the Dow Jones industrial average was up 339.86 points at 42,732.13. The S&P 500 index was up 73.92 points at 5,942.47, while the Nasdaq composite was up 340.89 points at 19,621.68.
It was the first day in the last week or so where the market has managed to sustain its gains from the morning, said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.
“We’ve had a lot of days ... where the market has opened strong or had a nice move in the first part of the day and then sold off later in the day,” he said.
“I think today’s action should inspire a little bit of confidence into next week.”
One factor likely helping markets Friday was the reelection of Mike Johnson as House speaker, said Archibald, as it helped eat away at lingering uncertainty ahead of Donald Trump’s presidential inauguration.
“Trump has been a big backer of his, so I think that's part of the reason that we've seen the market lift here into the afternoon,” said Archibald.
Optimism around growth-oriented sectors was clear as the Nasdaq led gains, noted Archibald. Nvidia shares rose 4.5 per cent, while Tesla erased its losses from the day before, gaining 8.2 per cent. Super Micro Computer jumped 10.9 per cent and Palantir Technologies rose 6.3 per cent.
Big tech names drove much of the gains in 2024 amid ongoing optimism over the growth of artificial intelligence technology.
As the inauguration nears, Archibald expects to see the so-called Trump trades like crypto and financials pick up again.
"I expect that those sectors are going to start to resume leadership as we get closer to January 20," he said.
Commodities got a boost Friday from news of more economic stimulus in China, said Archibald.
Meanwhile, the loonie neared 69 cents US Friday amid ongoing uncertainty over whether Trump will enact the tariffs he’s threatened, said Archibald.
The Canadian dollar traded for 69.24 cents US compared with 69.36 cents US on Thursday.
The February crude oil contract was up 83 cents at US$73.96 per barrel and the February natural gas contract was down 31 cents at US$3.35 per mmBTU.
The February gold contract was down US$14.30 at US$2,654.70 an ounce and the March copper contract was up four cents at US$4.07 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Jan. 3, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
