Markets Push Way up As BoC Stands Pat

Canada's main stock index opened higher on Wednesday, led by gains in materials and technology sectors, while investors digested the Bank of Canada's decision on interest rates.

The TSX advanced 65.36 points to open Wednesday at 35,385.90.

The Canadian dollar was ahead 0.03 cents to 71.13 cents U.S.

In company news, Cogeco Communications is set to release its third-quarter results later in the day. Analysts estimate the nation's sixth-largest communication services company to report earnings of $2.09 per share, according to data compiled by LSEG.

Cogeco shares kicked off the session up 27 cents to $63.77.

It’s a busy day on the economic schedule, as the Canadian Real Estate Association reported Canadian home sales posted a modest increase in June following a robust jump the previous month, and prices remained unchanged.

The Bank of Canada held its benchmark overnight interest rate steady at 2.25%. This decision marked the fifth interest rate announcement of the year.

Statistics Canada also reported wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) were essentially unchanged in May

Manufacturing sales increased 1.3% in May, mainly on increased sales of motor vehicles and chemical products. Meanwhile, sales in the electrical equipment, appliance and component subsector declined the most.

There were 190,564 new motor vehicles sold in Canada in May, a decrease of 1.9% from the same month one year earlier. However, sales in dollar terms increased 2.3% relative to May 2025. Over the same period, the number of new trucks sold decreased by 2.2%, while the number of new passenger cars sold edged up 0.1%.

ON BAYSTREET

The TSX Venture Exchange nicked higher 0.15 points to 891.85.

All but three of the 12 subgroups were higher, with health-care jumping 0.5%, real-estate better by 0.4%, and financials, up 0.3%.

The three laggards were consumer staples, down 0.6%, while materials sank 0.2%, and gold dropped 0.1%.

ON WALLSTREET

Stocks rose on Wednesday, led by gains in major technology stocks, as traders reacted to more data showing inflation is cooling.

The Dow Jones Industrials galloped 208.47 points to 52,716.76.

The S&P 500 index acquired 26.35 points to 7,569.94

The NASDAQ Composite regained 126.95 points to 26,233.95.

Shares of Big Tech companies bolstered the market. Tesla moved up 2%, while Amazon, Apple, Microsoft and Alphabet climbed more than 1%. Additionally, shares of SpaceX added nearly 2%.

On Wednesday, the produce price index unexpectedly fell 0.3% in June, while economists had expected it to be unchanged on the month.

That follows Tuesday’s cooler-than-expected consumer price index report, which bolstered hopes that the Fed may not need to raise interest rates as aggressively this year. The report prompted traders to scale back expectations for near-term Fed tightening.

Prices for the 10-year Treasury hiked, lowering yields to 4.56% from Tuesday’s 4.59%. Treasury prices and yields move in opposite directions.

Oil prices gained 66 cents to $80.00 U.S. a barrel.

Gold prices faded $5.40 to $4,064.30 U.S. an ounce.