S&P/TSX composite gains more than 100 points Monday, U.S. markets also rise
Canada’s main stock index closed up more than 100 points Monday led by gains in tech and metals, while U.S. markets also rose.
“What we’re seeing is more optimism around this soft landing narrative,” said Mona Mahajan, senior investment strategist with Edward Jones.
With consumers appearing to hold up despite higher interest rates and the labour market remaining strong even as inflation moderates, investors are looking for continuous confirmation that central banks are on the right path.
“I’d say there’s a little bit of, maybe, fatigue after such a strong run through last week,” Mahajan added, with markets appearing to take a breather on Monday.
The S&P/TSX composite index was up 107.27 points at 20,626.64.
In New York, the Dow Jones industrial average was up 100.24 points at 35,559.53.The S&P 500 index was up 6.73 points at 4,588.96, while the Nasdaq composite was up 29.37 points at 14,346.02.
There’s more to come for investors this week that could help solidify that optimism, said Mahajan, with earnings results from some of the biggest tech companies, as well as more jobs data.
On Friday, investors will get fresh U.S. employment data, after job openings data coming Tuesday. Amazon and Apple are among the big tech companies reporting earnings this week.
So far, the majority of companies reporting earnings for the second quarter have beat expectations, Mahajan said, including the narrow group of tech names that have led the rally so far this year.
“The largest upside surprises are coming from areas like tech and consumer discretionary, where companies are meeting and exceeding expectations,” she said.
“We are seeing, broadly speaking, the companies that have led the rally have also been reporting pretty strong earnings
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