Canada’s main stock index climbed higher on Friday, while U.S. markets were mixed as some investors looked for re-entry points.
Dustin Reid, vice-president and chief strategist for fixed income at Mackenzie Investments, said that stock markets have seen some volatility this past week with risks “bouncing around a fair bit on a number of themes.”
Friday’s trading session may have marked “a little bit of a buyback” given some of the recent risks, he said.
The S&P/TSX composite index was up 608.43 points at 33,073.71.
In New York, the Dow Jones industrial average was up 48.95 points at 49,500.93. The S&P 500 index was up 3.41 points at 6,836.17, while the Nasdaq composite was down 50.48 points at 22,546.67.
The Canadian stock market benefited from gains in the basic materials sector.
One of the factors helping that sector, Reid said, could be investors seeing opportunities after some swings in the precious metals market.
“It could also just be people squaring positions after big shorts over the last little bit and trying to buy them back,” he said.
Outside of basic materials, auto parts manufacturer Magna International Inc. shares soared 18.94% after it laid out guidance for rising profits in 2026.
U.S. stocks steadied on Friday after an encouraging update on inflation helped calm Wall Street.
A report showed U.S. inflation slowed last month by more than economists expected. U.S. consumers paid prices for groceries, clothes and other costs of living that were 2.4% higher overall than a year earlier.
While that’s higher than anyone would like and above the 2% target set by the U.S. Federal Reserve, it wasn’t as bad as December’s 2.7% rate. And an underlying measure of inflation that economists see as a better predictor of where it may be heading slowed to the least-painful level in nearly five years.
Besides helping U.S. households struggling to keep up with the cost of living, slower inflation could also give the Federal Reserve more leeway to cut interest rates, if needed. The Fed has put its cuts to interest rates on hold, but the widespread expectation is that it will resume later this year.
Reducing rates would give the economy a boost and juice prices for stocks. What holds the Fed back from cuts is that they can give inflation more fuel.
On Wall Street, stock prices steadied for several companies that investors had earlier targeted as potential losers from AI disruption.
Such drops have been rolling through the market recently, targeting industries that investors decide are under threat for disruption by AI. The reactions have been so aggressive and so quick that analysts have likened it to a “shoot first, ask questions later” mindset.
The Canadian dollar traded for 73.45 cents US compared with 73.50 cents US on Thursday.
The March crude oil contract was up five cents US at US$62.89 per barrel.
The April gold contract was up US$97.90 at US$5,046.30 an ounce.
— With files from The Associated Press.