Canada’s S&P/TSX composite rose 809.12 points to close at 36,341.40 and U.S. markets also posted large gains after midterm elections.
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Canadian markets climbed sharply on Wednesday following U.S. midterm election results that shifted political control in Washington.
The S&P/TSX composite index rose 809.12 points to close at 36,341.40, led by the basic materials sector. In commodities trading, the December gold contract rose US$132.60 to US$4,073.00 an ounce, while the December crude oil contract fell US$7.97 to US$88.12 per barrel.
In the United States, the Dow Jones industrial average rose 1,569.40 points to close at 53,356.12. The S&P 500 increased 119.70 points to 7,688.62, and the Nasdaq composite gained 364.50 points to 25,736.51.
Portfolio Management Corp. managing director Anish Chopra said markets responded positively to the midterm results, citing the potential for a divided government and the effect that could have on policy-making. He also said the results may change the tone of the trade dispute, while stating that “it does not change the tariffs overnight.”
IG Wealth Management vice-president of investment strategy Pierre-Benoît Gauthier said U.S. gains came from areas “anything but AI basically,” adding that data centres and services for AI were among the biggest losers of the election due to differences from the approach taken by Donald Trump. Gauthier said the decline in AI-related stocks did not amount to a crash, noting that many of those companies were still up substantially year to date.
The Canadian dollar traded at 71.63 cents US, compared with 71.46 cents US on Tuesday.
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