Canada’s main stock index returned to the green on Tuesday, though it was a rocky one on Bay Street as financial and tech gains were countered by mining and energy losses on the TSX.
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Traders are waiting for interest rate decisions from the Bank of Canada and the US Federal Reserve on Wednesday. The Canadian central bank has reduced rates by a cumulative 1.75 percentage points since June 2024 and is anticipated to cut rates by an additional 25 basis points.
After a sharp decline due to skepticism about the necessity of the heavy investments in artificial intelligence, US tech stocks are stabilizing. Investors are still watching Nvidia (NASDAQ:NVDA), as its chips are driving much of the AI advancement, making its stock a symbol of the ongoing drama. On Monday, US$1.2 trillion in market capitalization was wiped out after the Chinese startup DeepSeek launched its newest AI model, overtaking ChatGPT as the top free download on Apple (NASDAQ:AAPL) App Store. Nvidia’s drop was the largest one-day stock market loss for any company in US history.
The Canadian dollar traded for 69.45 cents US compared to 69.57 cents US on Monday.
US crude futures traded $0.71 higher at US$73.95 a barrel, and the Brent contract rose $0.91 to US$77.58 a barrel.
The price of gold was up US$28.99 to US$2,763.19.
In world markets, the Nikkei was down 548.93 points to ¥39,016.87, the Hang Seng was up 27.34 points to HK$20,225.11, the FTSE was up 30.16 points to ₤8,533.87, and the DAX was up 148.40 points to €21,430.58.
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(Top image generated with AI.)