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The TSX Composite Index surged 2.8% in the first week of May as hopes of interest rate cuts in June revived. The remainder of the month will see the influx of first-quarter earnings that could drive the stock prices of individual stocks. However, the market will remain volatile depending on the developments in the war situation in the Middle East. The last four months of 2024 showed the same volatility as in 2023.
The March inflation numbers of the United States raised concerns that the Fed might slow its 2024 interest rate cuts to just one. Economists earlier expected three rate cuts in 2024. These concerns pulled down a rallying TSX. However, a new hope of a June rate cut has revived the market. Despite all the volatility, the TSX Composite Index has surged 7% so far this year.
