S&P/TSX composite up more than 400 points after sharp reversal

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TORONTO –


Canada’s primary stock index was up more than 400 points after a tumble proper out of the gate, whereas U.S. stock markets additionally recovered considerably from the dip.


The S&P/TSX composite index was up 407.35 points or 2.4 per cent at 18,613.63, rebounding after dropping more than 300 points when the market opened.


Michael Currie, senior funding adviser at TD Wealth, mentioned immediately’s market whipsawed on the much-anticipated inflation knowledge popping out of the U.S., which beat expectations – in a nasty approach.


“We had hotter than expected U.S. inflation numbers, which nobody wants to see. They beat all the economists’ expectations.”


Inflation accelerated within the U.S., with shopper costs up 6.6 per cent in September yr over yr, excluding risky meals and power prices.


In New York, the Dow Jones industrial common was up 827.34 points or 2.8 per cent at 30,038.19. The S&P 500 index was up 92.88 points or 2.6 per cent at 3,669.91, whereas the Nasdaq composite was up 232.05 points or 2.2 per cent at 10,649.15.


“Pretty much everything on the screen is green. And so anybody who jumped on the bandwagon this morning and started dumping on the news, there’s really a lot of pain right now,” mentioned Currie.


It could possibly be that traders are doing a little bargain-hunting on the information that the market has reached new yearly lows, he speculated.


“Hopefully the market is finding a bottom here,” he mentioned.


However, the features posted Thursday may simply be undone within the subsequent few classes, very similar to what occurred at first of October, mentioned Currie.


“When you do see moves this aggressive, either up or down, they’re usually not sustainable,” he mentioned.


It’s clear {that a} pivot on rate of interest hikes is now out of the query for the Fed and the Bank of Canada, mentioned Currie.


“Black and white, the news was negative today. It’s not what we wanted,” he mentioned.


The Canadian greenback traded for 72.43 cents UScompared with 72.45 cents US on Wednesday.


The November crude contract was up $1.84 at US$89.11 per barrel and the November pure fuel contract was up 30.6 cents at US$6.74 per mmBTU.


Oil went up Thursday for the primary time in 4 classes, famous Currie, seemingly due to Energy Information Administration knowledge exhibiting a decline of just about 5 million barrels in distillate provides, prompting worries about provide heading into the winter.


The December gold contract was down 50 cents at US$1,677 an oz. and the December copper contract was up 1.6 cents at US$3.44 a pound.


– With information from The Associated Press


This report by The Canadian Press was first printed Oct. 13, 2022.

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