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TSX Surges to New Heights, Extending Winning Streak to Nine Days

The Toronto Stock Exchange (TSX) continues its impressive rally, closing at yet another record high as its winning streak stretches to nine consecutive trading days. The benchmark S&P/TSX Composite Index  rose 0.3% , adding 74.4 points  to settle at 25,971.9 .  This latest surge marks a 2.4% weekly gain , reinforcing investor optimism amid strong performances across multiple sectors. Healthcare led the charge with a 1.2% increase , while Basic Materials saw a slight dip of 0.2% .  Market analysts attribute the sustained momentum to robust corporate earnings, stable commodity prices, and easing trade tensions . With 74% of TSX-listed stocks closing higher , the bullish sentiment remains strong, fueling expectations for continued growth in the coming weeks.  Investors will be watching closely to see if the TSX can maintain its upward trajectory and extend its streak into double digits.
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Persistent Inflation Halts Interest Rate Cuts


The U.S. Federal Reserve has resolved to maintain interest rates at a two-decade peak of approximately 5.3%, citing the need for “greater confidence” that inflation is decelerating sustainably towards its 2% target. Despite recent data suggesting inflation was on the decline, several reports have indicated that price increases and economic growth are still more robust than anticipated, challenging the Fed’s expectations.

Key Points:

  • Inflation’s Stubbornness: Recent months have not shown significant progress towards the 2% inflation goal.
  • Rate Cut Projections Shift: Previously expected rate cuts in 2024 may be delayed, with financial markets anticipating only one reduction later this year.
  • Economic Optimism: Chair Jerome Powell expects inflation to decrease over the year, despite the current economic challenges.
  • Policy Adjustments: The Fed plans to slow down the unwinding of its COVID-era bond purchases, aiming to reduce its holdings at a gentler pace.

This stance comes amidst concerns that persistent inflation could jeopardize President Joe Biden’s re-election campaign, as many Americans express dissatisfaction with the economy’s performance, particularly the pace of price increases. The Fed’s cautious approach reflects its commitment to ensuring inflation targets are met before introducing any rate cuts, which would eventually lead to lower borrowing costs for consumers and businesses.

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