The Canadian stock market remained highly volatile on Wednesday after the U.S. Federal Reserve announced its decision to hold key interest rates unchanged at 5.25% to 5.5% for the seventh consecutive time, citing solid economic activity, strong job gains, and low unemployment. After surging by as much as 240 points in intraday trading, the S&P/TSX Composite Index settled with a minor increase of 74 points, or 0.3%, yesterday at 21,962.
Despite strong gains in sectors like healthcare, technology, and real estate, declines in utility and consumer cyclical stocks restricted the TSX benchmark’s upward movement.
The Fed’s June economic projections indicated that PCE (personal consumption expenditure) inflation is expected to be 2.6% in 2024, decreasing to 2.3% in 2025. The federal funds rate, according to the latest projections, is projected to be 5.1% in 2024, dropping to 4.1% in 2025. Based on these projections, expecting more…
