Canada’s main stock index rose to another record high on Wednesday as concerns about artificial intelligence disruption eased and solid bank earnings boosted financial shares.
The S&P/TSX Composite Index ended up 156.95 points, or 0.5%, at 34,127.33, moving past the record closing high it posted on Tuesday.
“It’s all systems go,” said Greg Taylor, chief investment officer at PenderFund Capital Management. “The bank earnings - there was some hesitation coming into them but they’ve actually been better than feared, and we’re seeing some big moves today.”
National Bank of Canada shares rose 6.6% and shares of Bank of Montreal were up 3.8% as both banks beat analysts’ estimates for first-quarter profit. Heavily weighted financials added 1.7%.
Shares of U.S. software companies extend gains for a second straight session after coming under selling pressure for much of this year on concerns about new AI tools upending traditional business models.
“We’re seeing some of the selloff in AI, the fears in software services, start to dissipate,” Taylor said.
The Toronto market’s technology sector added 1.6%, with shares of e-commerce company Shopify Inc ending 2.6% higher.
Thomson Reuters Corp was one of the biggest gainers for a second straight day, adding 10.1%. The company announced a US$600 million share buyback program and a $605 million return of capital.
Energy was a drag, falling 0.7%, as the price of oil settled 0.3% lower at US$65.42 a barrel after a large U.S. crude stock build.
Loblaw Companies Ltd shares fell 5.5% after the retailer’s quarterly revenue missed estimates, which contributed to a decline of 2.2% for the consumer staples sector.
On Wall Street, all three major U.S. stock indexes advanced, with the Nasdaq, powered by chips, enjoying the largest percentage gain as markets near the end of a tumultuous month that was marked by concerns over massive investment in AI infrastructure and the extent to which it could disrupt myriad industries.
Nvidia, at the forefront of the AI revolution, reported fourth-quarter revenue of $68.13 billion, beating analyst estimates. Its shares were up about 3% in extended trading.
The Philadelphia SE Semiconductor index gained 1.6% ahead of Nvidia’s earnings.
The S&P Software & Services index, bouncing back from its 23% year-to-date slump, was a clear outperformer, jumping 2.9%.
The Dow Jones Industrial Average rose 307.65 points, or 0.63%, to 49,482.15, the S&P 500 gained 56.06 points, or 0.81%, to 6,946.13 and the Nasdaq Composite gained 288.40 points, or 1.26%, to 23,152.08.
Among the 11 major sectors in the S&P 500, tech stocks led the percentage gainers, while industrials suffered the steepest loss.
Axon Enterprise jumped 17.6% after the Taser-maker beat fourth-quarter profit estimates.
Both First Solar and Lowe’s Companies provided weaker-than-expected annual sales guidance, sending their shares down 13.6% and 5.6%, respectively.
After Lowe’s disappointing report, housing and homebuilders were clear underperformers, down 3% and 3.7% respectively, despite the 30-year fixed mortgage contract rate dipping to a 3-1/2-year low last week, according to the Mortgage Bankers Association.
On the staples side, alcohol producers with Brown-Forman off 7.6% and Molson Coors down 4.8%, after London-listed Johnnie Walker and Guinness maker Diageo projected a 2% to 3% organic sales decline in 2026 and cut its interim dividend in half. GoDaddy tumbled 14.3% after the internet services provider forecast annual revenue below Wall Street expectations.
Advancing issues outnumbered decliners by a 1.78-to-1 ratio on the NYSE. There were 635 new highs and 98 new lows on the NYSE. On the Nasdaq, 3,148 stocks rose and 1,557 fell as advancing issues outnumbered decliners by a 2.02-to-1 ratio. The S&P 500 posted 50 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 127 new highs and 94 new lows.
Volume on U.S. exchanges was 17.50 billion shares, compared with the 20.27 billion average for the full session over the last 20 trading days.
Reuters, Globe staff