TSX Still Strong

Indices rose on Friday, helped by gains in the materials sector, after concerns around immediate U.S. military involvement in the Israel-Iran conflict were temporarily allayed.

The TSX Composite Index regained 65.58 points to move into Friday afternoon at 26,571.68. The index has gained 142 points on the week, or 0.54%.

The Canadian dollar skidded 0.26 cents to 72.76 cents U.S.

E-commerce giant Shopify, up $3.28, or 2.3%, was among the index's top percentage gainers, reaching a price of $146.98.

The White House said on Thursday President Donald Trump will decide on whether to join Israel in the war in the next two weeks.

Diplomatic efforts are also underway, with the U.K., French and German delegates scheduled to meet Iranian officials in Geneva later in the day.

In other major developments, Prime Minister Mark Carney said on Thursday Canada could increase counter tariffs on U.S.-produced steel and aluminum if he does not reach a broader trade deal with Trump within 30 days.

The economic calendar was a busy one Friday, with retail sales hiking 0.3% to $70.1 billion in April.

The new housing price index decreased by 0.2% percent in May from -0.4% in April.

Statistics Canada also reported its Industrial Product Price Index declined 0.5% month over month in May and increased 1.2% year over year. Its Raw Materials Price Index fell 0.4% month over month and declined 2.8% year over year.

ON BAYSTREET

The TSX Venture Exchange fell 2.93 points to 713.04. Over the last four-and-a-half sessions, the index has slumped eight points, or 1.1%.

All but three of the 12 TSX subgroups were ahead of the game by noon EDT, led by health-care, better by 0.7%, industrials, up 0.5%, and gold, improving 0.4%.

The three laggards were utilities, retreating 0.3% while consumer staples and energy each demurred 0.2%.

ON WALLSTREET

Stocks were relatively unchanged on Friday as investors contemplated the next move from the Federal Reserve and monitored the latest developments out of the Middle East.

The Dow Jones Industrials gained 31.01 points to observe noon hour EDT at 42,202.67.

The S&P 500 index slid 13.78 points to 5,967.09.

The NASDAQ Composite dipped 98.71 points, to 19,447.57.

For the week, the S&P 500 has traded up with a gain of 0.4%. The 30-stock Dow has risen by 0.3%, while the NASDAQ has jumped about 1%.

Chip stocks came under pressure following a report by the Wall Street Journal that the U.S. may revoke waivers for some semiconductor manufacturers. Nvidia was down more than 1%, while Broadcom and Taiwan Semiconductor Manufacturing each fell more than 2%.

Markets were closed Thursday for the “Juneteenth” holiday.

Stocks were relatively unchanged on Friday after Federal Reserve Governor Christopher Waller said inflation was tame enough that the central bank could cut rates at its next meeting, a more optimistic view than Chair Jerome Powell gave on Wednesday.

Fed Chair Jerome Powell said Wednesday the central bank was in no hurry to cut benchmark rates and will remain data dependent, especially as it remains unclear how Trump’s tariffs will impact the economy. Stocks closed slightly lower that day following those remarks.

Trump ripped into Powell again Thursday, saying the Fed Chair is costing the U.S. “hundreds of billions of dollars” by delaying rate cuts.

Investor fears around the conflict between Israel and Iran, which has yet to cool, were tamed after Trump said Thursday that he would decide whether to strike Iran within the next two weeks but wanted to allow for “a substantial chance of negotiations.”

Prices for the 10-year Treasury were higher, weighing yields to 4.38% from Wednesday’s 4.39%. Treasury prices and yields move in opposite directions.

Oil prices notched a nickel higher to $75.19 U.S. a barrel.

Gold prices slid $22.20 to $3,385.90 U.S. an ounce.

Dow Little Changed Day After Holiday