Equities Soar to End Wednesday

It was an “up” day for Canada's main stock index on Wednesday, as it was buoyed by renewed optimism for fresh trade agreements between the U.S. and its partner countries after President Donald Trump signaled the possibility of new deals ahead of the looming August 1 deadline.

The TSX Composite Index came off its highs of the day, but still managed to hang onto 51 points to conclude Wednesday at 27,415.43.

The Canadian dollar squeezed higher 0.05 cents at 73.55 cents U.S.

Trump struck a trade deal with Japan, lowering tariffs on auto imports and sparing Tokyo from punishing new levies on other goods, in exchange for a $550-billion package of U.S.-bound investment and loans.

Meanwhile, prospects of an EU-U.S. trade agreement improved after Trump said on Tuesday that EU representatives would come for trade negotiations on Wednesday.

The news lifted market sentiment and sparked hopes of more U.S. agreements before the August 1 tariff deadline.

On the TSX, energy stocks ruled the day, as Baytex Energy picked up15 cents, or 5.5%, to $2.66, while Enerflex shares were 29 cents to the good, or 2.7%, to $11.16.

Computer Modeling Group took on 18 cents, or 2.4%, to $7.81. Elsewhere in tech, Celestica grabbed $15.14, or 7.1%, to $7.81.

In consumer discretionary stocks, Magna International prospered $1.86, or 3.3%, to $59.06, while BRP gained $2.08, or 3.1%, to $70.19.

Gold moved downward, with Centerra Gold subtracting 19 cents, or 1.8%, to $10.25, while Novagold lost 40 cents, or 4.8%, to $7.92.

Industrial stocks were weighed down by Canadian National Railway, which dropped $5.52, or 4%, to $131.04, after missing second-quarter revenue expectations. Rival Canadian Pacific dipped $1.07, or 1%, to $101.77.

In materials stocks, Orla Mining docked $1.09, or 6.2%, to $16.05, while Pan American Silver slid 79 cents, or 1.9%, to $40.23.

Among individual stocks, Zara founder Amancio Ortega's investment vehicle Pontegadea Inversiones, has agreed to acquire a 49% stake in PD Ports from Brookfield Asset Management. The news sent Brookfield's shares up by $2.21, or 2.7%, to $84.86.

Economically speaking, Statistics Canada reports its new housing price index declined 0.2% on a month-over-month basis in June, down for the third consecutive month.

The agency adds prices were down in 12 of the 27 census metropolitan areas surveyed, while prices were unchanged in 10 CMAs and up in the remaining five.

ON BAYSTREET

The TSX Venture Exchange reversed 1.9 points to close Wednesday at 804.48.

Eight of the 12 TSX subgroups were higher, with energy towering 1.2%, while information technology and consumer discretionary stocks each climbed 0.9%.

The four laggards were weighed by gold, descending 1%, industrials 0.5% to the bad, and materials off 0.4%.

ON WALLSTREET

Equities moved sharply higher on Wednesday as the latest trade developments spurred optimism on Wall Street that the U.S. would reach more deals before its impending tariff deadline.

The Dow Jones Industrial Average skyrocketed 507.85 points, or 1.1%, to 45,010.29.

The S&P 500 index gathered 49.29 points to 6,358.91 and hit a new all-time high. Wednesday’s moves yet another peak, the 12th for the much-broader market in 2025.

The NASDAQ vaulted 127.33 points to 21,020.02.

The run to new highs has sparked so-called animal spirits on Wall Street, with shares of small companies with brand names and questionable finances getting a boost. Kohl’s surged on Tuesday and GoPro and Krispy Kreme were jumping on Wednesday.

Investors await earnings from Alphabet and Tesla expected after the bell. They will be the first reports of the earnings season from the megacap technology sector, a group that’s been closely watched given its market leadership in recent years.

Beyond big tech, investors will also monitor reports from Chipotle Mexican Grill and Mattel after the market closes. These releases come amid a busy earnings week. Of the 105 S&P 500 companies that have reported so far this season, more than 86% have posted earnings that surpassed Wall Street’s expectations

Trump said in a Truth Social post Tuesday night that the U.S. had completed a “massive Deal” with Japan. The agreement includes “reciprocal” tariffs of 15% on the nation’s exports to the U.S.

The president also said the U.S. is meeting with European officials in a push to reach a trade deal with the European Union.

The U.S. has been pushing to reach trade deals with other countries ahead of an Aug. 1 deadline. This comes after Trump on April 2 sent markets into turmoil, with his announcement of sweeping tariffs

Prices for the 10-year treasury backslid, raising yields to 4.37% from Tuesday’s 4.34%. Treasury prices and yields move in opposite directions.

Oil prices regained 18 cents to $65.49 U.S. a barrel.

Gold prices handed back $43.20 to $3,400.50 U.S. an ounce.