TORONTO 鈥� 乌鸦传媒's main stock index rose on Tuesday, buoyed by a 21-per-cent gain in Shopify Inc. shares, while U.S. markets pulled back after a weeklong post-election rally.
Following Donald Trump's victory last week in the U.S. presidential election, markets have been flying to new heights, especially in sectors seen as potential benefactors of his presidency.
鈥淚t鈥檚 been the biggest five-day run in a year for the S&P (500),鈥� said Angelo Kourkafas, senior investment strategist at Edward Jones.
鈥淲e are seeing, naturally, stocks pause to catch their breath, to make this move a little more sustainable,鈥� he said.
In New York, the Dow Jones industrial average was down 382.15 points at 43,910.98. The S&P 500 index was down 17.36 points at 5,983.99, while the Nasdaq composite was down 17.36 points at 19,281.40.
The S&P/TSX composite index closed up 133.73 points at 24,923.01, and briefly topped the 25,000-point mark Tuesday morning.
The TSX charted its own course Tuesday thanks to tech darling Shopify.
The company鈥檚 stock price soared more than 21 per cent after it reported a 26-per-cent increase in revenue during its third quarter as well as higher net income.
U.S. markets also seemed more hesitant Tuesday as bond yields rallied, noted Kourkafas.
Treasury yields have been climbing sharply since September in part due to the U.S. economy's resilience in the face of higher interest rates.
Some of Trump鈥檚 promised policies, like higher tariffs, are seen as inflationary, Kourkafas said, adding upward pressure on yields.
"I think the market's interpretation has been that the decisive election result is potentially beneficial for equities ... but less so for bonds and fixed income," he said.
Since the elections, markets have scaled back their bets for further rate cuts from the U.S. Federal Reserve in the coming year, said Kourkafas.
鈥淚 think markets are adjusting to not only potential implications, but also an economic backdrop that points to a still strong U.S. economy,鈥� said Kourkafas, ahead of Wednesday鈥檚 inflation report.
"That means there is less urgency for the Federal Reserve to cut rates aggressively," he said.
The Canadian dollar traded for 71.72 cents US compared with 71.88 cents US on Friday.
The December crude oil contract was up eight cents at US$68.12 per barrel and the December natural gas contract was down a penny at US$2.91 per mmBTU.
The December gold contract was down US$11.40 at US$2,606.30 an ounce and the December copper contract was down nine cents at US$4.14 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Nov. 12, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
