The Canadian market concluded Wednesday on a high note, maintaining strength throughout the session as soft U.S. inflation data alleviated concerns about future interest rates.
The benchmark S&P/TSX Composite Index, which peaked at 22,127.72 earlier in the day, closed with a gain of 74.21 points, or 0.34%, at 21,961.55.
Significant gains were observed in the technology, healthcare, real estate, and consumer staples sectors, while energy stocks displayed some weakness.
Canadian Western Bank (CWB.TO) surged by 68.3% following the announcement of an all-share acquisition deal by National Bank of Canada (NA.TO) that values CWB at approximately $5 billion. Conversely, shares of National Bank of Canada (NA.TO) dropped nearly 6%.
Tucows Inc (TC.TO) saw a leap of over 10%, while Tecsys Inc (TCS.TO) rallied by 8.4%. Other notable performers included Alimentation Couche-Tard (ATD.TO), Boyd Group (BYD.TO), and Cameco Corporation (CCO.TO), all gaining between 3% and 4%.
Several other stocks also posted notable gains: EQB Inc (EQB.TO), Celestica Inc (CLS.TO), Cargojet (CJT.TO), BRP Inc (DOO.TO), FirstService Corporation (FSV.TO), Descartes Systems Group (DSG.TO), Canadian Tire Corporation (CTC.A.TO), Colliers International (CIGI.TO), WSP Global (WSP.TO), and Constellation Software (CSU.TO) advanced between 1% and 3%.
In contrast, Dollarama Inc (DOL.TO) decreased by 4%. The company reported a 20% increase in net earnings, reaching $215.8 million, or $0.77 per diluted common share, in Q1 FY2025, compared to $179.9 million, or $0.63 per diluted common share, in Q1 FY2024.
Tourmaline Oil Corp (TOU.TO), Hydro One (H.TO), and Nutrien (NTR.TO) experienced losses ranging from 1.6% to 2.2%.
According to the Labor Department, the consumer price index remained unchanged in May after a 0.3% rise in April, against economists' expectations of a 0.1% increase. This stability was attributed to a 3.5% drop in gasoline prices, which balanced a continued rise in shelter costs.
Excluding food and energy prices, core consumer prices rose by 0.2% in May, following a 0.3% increase in April. Core prices had been expected to increase by 0.3%.
The report also noted that the annual consumer price growth rate slowed to 3.3% in May from 3.4% in April, despite expectations for it to remain constant. Additionally, the annual core consumer price growth rate decelerated to 3.4% in May from 3.6% in April, below the anticipated dip to 3.5%.
As widely anticipated, the Federal Reserve left interest rates unchanged today, signaling that only one interest rate cut is expected this year. The Fed acknowledged modest progress toward its inflation objectives but noted that officials require "greater confidence" in the sustainable movement of inflation towards their target before considering rate reductions.
