Trader Edward Curran works on the floor of the New York Stock Exchange, Wednesday, April 22.Richard Drew/The Associated Press
Canada’s main stock index on Wednesday clawed back some of the previous day’s steep decline as resource shares rose and investors cheered an extended ceasefire in the Middle East.
The Toronto Stock Exchange’s S&P/TSX Composite Index ended up 146.81 points, or 0.4 per cent, at 33,955.11. On Tuesday, the index posted its biggest drop in a month, falling 1.6 per cent.
Iran seized two ships in the Strait of Hormuz, tightening its grip on the strategic waterway after U.S. President Donald Trump called off attacks with no sign of peace talks restarting.
“As long as this on-again and off-again war continues, market volatility is going to be high,” said Michael Sprung, president at Sprung Investment Management.
“The day to day machinations of the market are revolving somewhat around the Strait of Hormuz and energy prices. I think beyond that the implications of inflation and possibly stagflation are beginning to settle into people’s consciousness.”
The halting of traffic in the strait has led to an oil price shock, boosting inflation. Data on Monday showed that Canada’s annual inflation rate rose to 2.4 per cent in March, from 1.8 per cent in February.
U.S. crude oil futures settled 3.8 per cent higher at US$92.96 a barrel, which helped lift the energy sector by 1.3 per cent.
The U.S. Supreme Court rejected Enbridge’s bid to change the venue of an environmental lawsuit by Michigan seeking to force the Canadian energy company to stop operating an oil pipeline between two of the Great Lakes. Shares of Enbridge were down 0.2 per cent.
The materials group added 1.4 per cent as gold and copper prices rose.
Rogers Communications shares jumped 13.5 per cent as the telecom company reported quarterly revenue slightly above analysts’ average estimate and forecast 2026 capital expenditure about 30 per cent below 2025 levels.
Consumer staples was one of five major sectors to post declines. It lost 0.9 per cent, with shares of Metro down 2.7 per cent after the grocery retailer said the Laval labour dispute will have an impact on the company’s third-quarter results.
U.S. stocks climbed on Wednesday to send the S&P 500 and Nasdaq to closing records, after U.S. President Donald Trump extended the ceasefire with Iran, with a round of solid corporate earnings providing additional support for optimism.
Trump said the indefinite extension of the ceasefire followed a request by Pakistani mediators. However, the U.S. Navy’s blockade of Iranian ports remained in effect, and Iran seized two ships in the Strait of Hormuz.
The opening of the waterway, responsible for about 20 per cent of global oil supply, remains a major unknown for investors and has been one of the sticking points in the negotiations. Iran’s parliament speaker and top negotiator, Mohammad Baqer Qalibaf, said a full ceasefire only made sense if the blockade was lifted.
Stocks have rallied in recent weeks on the belief that a peace deal could be on the horizon, with the Nasdaq snapping a streak of 13 straight daily gains on Monday.
“Everyone’s kind of sick of it... clearly, the market is looking for a beneficial outcome or some kind of decent outcome here,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
“Earnings have been good - now, will they continue to be good if we continue to be at war - it’s going to lose a little bit of its oomph. That said, in my world, there’s still tremendous value, there’s a lot of really cheap stuff out there.”
The Dow Jones Industrial Average rose 340.65 points, or 0.69 per cent, to 49,490.03, the S&P 500 gained 73.89 points, or 1.05 per cent, to 7,137.90 and the Nasdaq Composite gained 397.60 points, or 1.64 per cent, to 24,657.57.
First-quarter earnings growth is tracking at about 14 per cent, according to LSEG data. However, risks of an inflation flare-up remain, with oil prices hovering near the $100-a-barrel mark and potentially moving higher.
The S&P 500 technology index climbed about 2.31 per cent and was the best performing of the 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which surged 8.48 per cent to close at a record $487.48. The tech index has risen in 15 of the past 16 sessions.
The Philadelphia SE Semiconductor Index hit an intraday record for an 11th straight session and notched its 16th straight day of gains - its longest streak ever.
Seagate rose 3.57 per cent after Barclays upgraded the data storage firm’s rating to “overweight”.
A strong start to earnings season has eased concerns about the health of the U.S. consumer despite rising energy prices from the Iran war.
S&P 500 EPS estimates for 2026 and 2027 have risen by 4 per cent since late January, according to data from Goldman Sachs.
GE Vernova surged 13.75 per cent as the best performer on the benchmark S&P index after the power equipment maker raised its annual revenue forecast.
Medical device maker Boston Scientific’s shares jumped 8.99 per cent after its first-quarter results.
Shares of planemaker Boeing advanced 5.53 per cent after a smaller-than-expected quarterly loss and was the biggest boost to the Dow.
United Airlines, however, stumbled 5.58 per cent after forecasting second-quarter and full-year profits below Wall Street estimates as higher jet fuel prices squeeze margins and cloud its near-term outlook.
After the closing bell, electric automaker Tesla climbed 4.6 per cent after reporting a surprise positive free cash flow in the first quarter.
Shares of Spirit Airlines, which trades over the counter, more than doubled to US$1.50 following a Wall Street Journal report that said the Trump administration was close to a deal to rescue the embattled low-cost carrier.
Reuters