Canada’s main stock index rose on Thursday on the first trading day of 2025 as a jump in commodity prices boosted energy and metal mining shares, with the index clawing back some of its December decline. Wall Street see-sawed to a lower close.
The S&P/TSX composite index ended up 170.09 points, or 0.7%, at 24,898.03, its highest closing level since Dec. 17.
For 2024, the TSX gained nearly 18%, its biggest yearly advance since 2021. But it was down 3.6% in December as a hawkish shift by the Federal Reserve contributed to an increase in long-term U.S. borrowing costs.
“Much like a surprise holiday guest, December’s market shift was uninvited and unplanned,” Greg Taylor, chief investment officer of Purpose Investments, said in a note. “We may be entering a new normal with more moderate returns and higher volatility. Tactical strategies and hedging will be key to navigating this period.”
Domestic data was upbeat. It showed that manufacturing activity increased at the fastest pace in nearly two years in December as inventory accumulation by U.S. clients in anticipation of trade tariffs provided a measure of support for export sales.
Energy was up 1.6% as the price of oil settled nearly 2% higher at US$73.13 a barrel after a pledge by Chinese President Xi Jinping to promote economic growth.
The price of gold also rose, which boosted metal mining shares. The materials group added 3.3%.
Nine of 10 major sectors gained ground. The exception was heavily weighted financials, which ended 0.3% lower.
In the U.S., all three major indexes ended the session in negative territory, a reversal of an earlier rally but off session lows.
Shares of Tesla sank 6.1% after reporting its first annual drop in deliveries, as incentives failed to stem a decline in demand for its aging line-up of electric vehicles.
A report from the Labor Department showed U.S. initial and continuing claims for unemployment benefits both fell last week, supporting the narrative of a solid jobs market and adding weight to the possibility that the U.S. central bank could let its key interest rate stand at this month’s policy meeting.
Wall Street’s main indexes notched double-digit gains in 2024, with the benchmark S&P 500 recording its best two-year run since 1997-1998. Those gains were driven by the U.S. Federal Reserve’s first rate cuts in three-and-a-half years, the ongoing artificial intelligence boom and expectations of pro-business policies from the incoming Trump administration.
The rally lost steam in the closing weeks of 2024, with the S&P 500 and the Dow marking declines for December, as markets priced in the likelihood of fewer rate cuts from the Fed this year.
The S&P and the Nasdaq have now posted five consecutive sessions in the red, their longest losing streaks since mid-April.
The Dow Jones Industrial Average fell 151.95 points, or 0.36%, to 42,392.27, the S&P 500 lost 13.08 points, or 0.22%, to 5,868.55 and the Nasdaq Composite lost 30.00 points, or 0.16%, to 19,280.79.
Among the 11 major sectors of the S&P 500, consumer discretionary stocks were down the most, weighed by Tesla.
Energy shares enjoyed the largest percentage gains.
Apple lost 2.6% as the iphone maker offered rare discounts in China in order to compete against domestic rivals.
Crypto stocks such as Coinbase, MicroStrategy and MARA Holdings gained between 2.6% and 3.6%, tracking rising Bitcoin prices.
Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE. There were 77 new highs and 114 new lows on the NYSE. On the Nasdaq, 2,386 stocks rose and 1,988 fell as advancing issues outnumbered decliners by a 1.2-to-1 ratio. The S&P 500 posted one new 52-week high and 11 new lows while the Nasdaq Composite recorded 60 new highs and 34 new lows.
Volume on U.S. exchanges was 15.01 billion shares, compared with the 14.92 billion average for the full session over the last 20 trading days.
Reuters, Globe staff