Canada’s main stock index closed higher on Friday, while U.S. markets ended the week in the red amid a tech sell-off and rising oil prices. The S&P/TSX composite gained 39.45 points to 36,176.55, despite volatile swings throughout the week. Theresa Shutt, chief investment officer at Harbourfront Wealth Management, attributed the market’s struggles to inflation concerns ahead of Canada’s September inflation data release on Monday.
Investors are bracing for a potential rise in Canada’s annual inflation rate to 3.2% from 3% in August, according to a Reuters poll. Shutt noted that rising inflation and weaker job numbers have heightened economic pressures. Meanwhile, oil prices surged, with the December crude oil contract closing at US$99.02 per barrel, driven by global supply constraints and geopolitical tensions.
In New York, the Dow Jones industrial average fell 175.28 points to 52,002.41, the S&P 500 dropped 84.62 points to 7,659.44, and the Nasdaq composite lost 572.99 points to 26,140.03. Tech stocks led the decline, with Micron Technology down 5.6%, Advanced Micro Devices off 6%, and Intel shedding 5.8%. Shutt highlighted that borrowing costs for tech companies have become a major market concern.
The Canadian dollar strengthened slightly to 70.65 cents US, while the December gold contract rose US$11.00 to US$4,181.10 an ounce. Shutt also dismissed concerns over Alberta’s referendum vote, stating that broader economic and geopolitical factors are driving market sentiment.