TSX Ends Lower as Metal Mining Shares Fall, US Stocks Rally

Strategic Insights -

US stocks continued their impressive run on Thursday, with the Dow and S&P 500 posting their eighth straight session of gains. Microsoft and Meta Platforms were the main drivers of the rally, with the tech giants' strong results easing concerns about artificial intelligence spending and the impact of President Donald Trump's tariffs on economic growth. However, Canadian stocks ended slightly lower, with the TSX composite index falling 0.2%, due to a decline in gold mining shares.

Key Takeaways:

  • Microsoft surged 7.6% and closed at its highest level since late January, driven by an upbeat quarterly growth forecast for its cloud-computing business Azure, briefly pushing the company above Apple to become the world's most valuable.
  • Meta Platforms gained 4.2% and closed at its highest since April 9, posting higher-than-expected revenue on the back of a strong advertising performance.
  • The Dow Jones Industrial Average rose 83.60 points, or 0.21%, to 40,752.96, the S&P 500 gained 35.08 points, or 0.63%, to 5,604.14, and the Nasdaq Composite gained 264.40 points, or 1.52%, to 17,710.74.
  • Repercussions from frequent shifts in US trade policy have hung over a solid earnings season, with many companies slashing or withdrawing their profit outlooks. S&P 500 first-quarter earnings are seen growing 12.9% on an annual basis, up from the 8% growth rate seen on April 1.
  • Tech rose 2.2% and communication services rose 1.6%, leading sector gains, while the materials group, which includes metal mining shares, fell 2.4% as gold dropped to a two-week low.

Statistics:

  • tsx composite index ended down 46.13 points, or 0.2%, at 24,795.55.
  • Dow Jones Industrial Average rose 83.60 points, or 0.21%, to 40,752.96.
  • S&P 500 gained 35.08 points, or 0.63%, to 5,604.14.
  • Nasdaq Composite gained 264.40 points, or 1.52%, to 17,710.74.
  • Technology sector rose 0.7% and energy was up 0.9%.
  • US economic data showed layoffs increased more than expected last week, potentially hinting at a pick-up in job cuts following tariffs.