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Market Volatility: Stocks Flatten as Powell's Remarks Weigh on Gains

The stock market experienced a turbulent session on Wednesday, ultimately closing near flat after Federal Reserve Chair Jerome Powell's comments on monetary policy and inflation concerns. The S&P 500 ended nearly unchanged , giving back earlier gains as investors digested Powell’s remarks on the Fed’s stance regarding interest rates and economic restraint. Powell reiterated that the central bank remains cautious about inflation, particularly in light of tariff-driven price increases expected over the summer. While the Fed signaled that borrowing costs are likely to decline this year, the pace of future rate cuts appears to be slowing.  Following Powell’s speech, U.S. Treasury yields reversed their earlier declines , influencing market sentiment. The Dow Jones Industrial Average fell 43.83 points (0.10%) , while the Nasdaq Composite managed a slight gain of 23.66 points (0.12%).  Investors also kept a close eye on geopolitical developments, particularly tensions in the Midd...
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Bank of Canada Holds Steady Amid Economic Resilience

The Bank of Canada is expected to maintain its current interest rate of 2.75% at its upcoming policy meeting, following stronger-than-anticipated economic growth in the first quarter of 2025.  

Recent data from Statistics Canada revealed that the economy expanded at an annualized rate of 2.2%, surpassing forecasts of 1.7%. This growth was largely driven by increased exports, particularly in passenger vehicles and industrial machinery, as businesses rushed to stockpile goods ahead of newly imposed U.S. tariffs.  

Despite the positive headline figures, underlying domestic demand remains weak, with household spending growth slowing to 0.3%, down from 1.2% in the previous quarter. Additionally, residential investment declined by 2.8%, reflecting a downturn in housing resale activity.  

While some economists argue that the central bank should resume rate cuts to cushion the economy against potential trade-related disruptions, the Bank of Canada appears poised to hold steady for now. Analysts suggest that policymakers are waiting for further clarity on inflation trends and the broader impact of tariffs before making any adjustments.  

With uncertainty looming over the global trade landscape, the Bank of Canada’s cautious approach underscores its commitment to balancing economic stability with inflation control. The next policy announcement is scheduled for June 4, where officials will provide further insights into their outlook for the remainder of the year.

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