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Investing.com – Canada’s main stock indexes enjoyed gains on Thursday, after a day of tech sector selloffs, U.S. Fed Chair Jerome Powell’s comments, and the Bank of Canada’s decision to maintain the key rate.
At the 4:00 ET close, the S&P/TSX 60 Futures finished up 5.8 points or 0.4%, having inched upward by 0.05% in the previous session.
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The S&P/TSX Composite index also rose slightly by 86 points or 0.4%, after a modest gain of 39 points or 0.2% on Wednesday.
The Bank of Canada (BoC) announced on Wednesday its decision to maintain the policy interest rate at 2.75%, aligning with consensus expectations. This decision comes after a series of seven consecutive rate cuts, the most recent being a 25 basis point reduction in March from 3.00% to the current rate.
In response to the announcement, CIBC (TSX:CM) Economics’ Avery Shenfeld commented, "We see this as a pause, one tied to the Bank’s lack of clarity on the outlook ahead, rather than the end of the easing cycle, unless the tariff threat disappears in short order."
In Thursday’s news, Trump criticized the Fed’s Powell for his cautious stance on monetary policy. Trump referred to Powell as "Too Late" in his post, stating that "Powell’s termination cannot come fast enough!" The President has been an advocate for the U.S. Central Bank cutting rates, sharing his belief that the Fed should have already lowered rates earlier in the year.
On Wednesday, Fed Chair Powell said that the Fed was not inclined to cut interest rates in the near future, citing the inflationary pressures and economic uncertainties introduced by the new tariffs.
Later on Thursday, Trump reiterated up his comments, saying, “If I ask him to, he’ll be out of there. I don’t think he’s doing the job. He’s always too late, a little slow. I’m not happy with him. If I want him out, he’ll be out of there real fast.” He also shared his belief in a trade deal with China, saying, ""We’re going to make a deal... I think we’re going to make a very good deal with China."
U.S. stocks mixed
U.S. Stock indexes were mixed after opening Thursday, as the tech sector looked to bounce back from a tough Wednesday session, and investors digested Trump’s escalating criticism of Powell.
At the 4:00 close ET, the S&P 500 closed up 6.9 points or 0.13%. Conversely, the Dow Jones Industrial fell 527.3 points or 1.3% on the day, and the Nasdaq Composite fell 20.7 points or 0.13%.
In Wednesday’s trading the Dow Jones Industrial Average fell 700 points or 1.7%, the S&P 500 declined 121 points or 2.2%, and the NASDAQ Composite plummeted 516 points or 3.1%.