Canada’s main stock index closed higher on Thursday thanks to a boost in metal prices, particularly in the materials sector. The S&P/TSX composite index ended up 0.2% at 21,708.44, while the S&P 500 closed lower for the fifth consecutive session.
Investors expressed concerns about potential delays in interest rate cuts in the U.S., which limited the market gains. The U.S. benchmark stock index declined as economic data and comments from Federal Reserve officials indicated that a rate cut may not happen in the near future.
The materials sector saw a 1.2% increase on Thursday, driven by rising gold and copper prices. Shares of First Quantum Minerals Ltd ended 8.9% higher. The utilities group also performed well, adding 1.1%, while financials were up 0.3%.
However, energy was a drag on the market, falling 0.5% as the price of oil remained near its lowest level in three weeks. U.S. crude oil futures settled at $82.73 a barrel.
Despite a resilient labor market and positive economic indicators, expectations for an interest rate cut by the Federal Reserve in June have decreased. Market expectations for a rate cut in July stand at 41.5%.
After the market closed, Netflix fell about 4% in extended trading following its quarterly results. On the positive side, Meta Platforms rose 1.54% after Bernstein raised its price target. Earnings season saw Genuine Parts surge 11.22%, while Las Vegas Sands dropped 8.66% despite beating quarterly expectations.
Equifax also tumbled, down 8.49%, after forecasting second-quarter revenue below estimates. On the NYSE, declining issues outnumbered advancing ones, while on the Nasdaq, the ratio was 1.18-to-1. Volume on U.S. exchanges was 10.54 billion shares.