TSX Ends Modestly Higher

(RTTNews) - The Canadian market closed on a positive note on Wednesday after staying firm right through the day's session, as soft U.S. inflation data helped ease concerns about the outlook for interest rates.

The benchmark S&P/TSX Composite Index, which surged to 22,127.72 in early trades, ended the session with a gain of 74.21 points or 0.34% at 21,961.55.

Technology, healthcare, real estate and consumer staples stocks were among the notable gainers. Energy stocks were a bit weak.

Canadian Western Bank (CWB.TO) soared 68.3% after National Bank of Canada (NA.TO) reached an all-share deal to acquire CWB that values the lender at about $5 billion. National Bank of Canada (NA.TO) ended nearly 6% down.

Tucows Inc (TC.TO) zoomed more than 10%. Tecsys Inc (TCS.TO) rallied 8.4%, while Alimentation Couche-Tard (ATD.TO), Boyd Group (BYD.TO) and Cameco Corporation (CCO.TO) ended higher by 3 to 4%.

EQB Inc (EQB.TO), Celestica Inc (CLS.TO), Cargojet (CJT.TO), BRP Inc (DOO.TO), FirstService Corporation (FSV.TO), Descartes Systems Group (DSG.TO), Canadian Tire Corporation (CTC.A.TO), Colliers International (CIGI.TO), WSP Global (WSP.TO) and Constellation Software (CSU.TO) climbed 1 to 3%.

Dollarama Inc (DOL.TO) closed lower by 4%. The company announced that its net earnings increased by 20% to $215 .8 million, or $0.77 per diluted common share, in the first quarter of fiscal 2025, compared to $179.9 million, or $0 .63 per diluted common share, in the first quarter of fiscal 2024.

Tourmaline Oil Corp (TOU.TO), Hydro One (H.TO) and Nutrien (NTR.TO) lost 1.6 to 2.2%.

The Labor Department said its consumer price index came in unchanged in May after rising by 0.3% in April. Economists had expected consumer prices to inch up by 0.1%. The unchanged reading came as a 3.5% nosedive by gasoline prices helped offset a continued increase in prices for shelter.

Excluding food and energy prices, core consumer prices rose by 0.2% in May after climbing by 0.3% in April. Core prices were expected to increase by another 0.3%.

The report also said the annual rate of consumer price growth slowed to 3.3% in May from 3.4% in April. Economists had expected the pace of growth to remain unchanged. The annual rate of core consumer price growth also slowed to 3.4% in May from 3.6% in April. The pace of growth was expected to dip to 3.5%.

The Fed left interest rates unchanged today, as widely expected, and revealed officials now expect only one interest rate cut this year.

The Fed acknowledged modest further progress toward its inflation objective in recent months but said officials still need "greater confidence" inflation is moving sustainably towards the target before they will consider lowering rates.