

Canada’s Market Rises as U.S. Stocks Slide After Powell’s Rate Cut Comments
United States newly elected President Donald Trump has proposed a major tariff that threatens Canada’s trade-based economy. After the elections, the Canadian dollar responded negatively, falling to its lowest level since May 2020, trading at 1.4053 per U.S. dollar or 71.16 U.S. cents. Despite the current decline, investment strategist Angelo Kourkafas has noted that the Canadian dollar performed quite well compared to other world currencies. This declining dollar valuation and trade uncertainties have impacted the Canadian economy negatively, while its resilience compared to its peers underscores the underlying economic stability amidst the expected challenges from the United States policy changes.
Opinion of Jerome Powell
The Chairman of the Federal Reserve, Jerome Powell, has indicated that this stable economic growth, rising job market, and persistent inflation, which targets above 2 %, have allowed the central bank to take the necessary steps in interest rate decisions. With stable economic conditions, the Fed is not at all experiencing any kind of pressure regarding the rate cut quickly. However, they have full flexibility to maintain economic development one by one before taking any measures.
The statement of Powell indicates that the Fed is committed to balancing out inflation with stable growth; it also shows a measured and data recovery approach to the policies regarding monetary policy to ensure long-term economic stability. After the statement from the chairman regarding the uncertainties of possible rate cuts, the United States stock futures dropped.
His statements have also pulled up Treasury yields at higher rates, pressuring the equities. The market’s anticipation regarding rate cuts is now on pause, while expectations of 73 % basis points of cut are still expected by the last phase of the year 2025.
The downfall of the Canadian dollars
Canada`s one of the important stock indexes continued its record-breaking streak on 14th November, which is fuelled by the strong movement in energy-based stocks. This movement in the energy sector is becoming helpful in counterbalancing the losses that are faced by the technology stocks, which experienced a downturn. The investors are seeking to take into account the current downfall of the Canadian dollar, which experienced complexity in the market behaviour. The significant gain in the energy sector has indicated its buoyancy and impact on the index, while the other sectors are also facing challenges. The combination of all the factors has allowed the index to stabilise its uptrend, showing the mixed and positive outlook of the financial market of the overall Canada.
The composite index such as S&P/TSX has ended Thursday`s trading session with a rise of 60.65 points, or 0.2 %, with a closing value of 25,049.67, which is also a new record closing high, crossing the last peak of the day. By this growth, the index has continued its winning streak for the fourth consecutive session, which indicates a stable market movement. These growths are fuelled by the strong performances of some primary sectors, where the energy-based stocks played a vital role in it. This consistency in growth reflects the investor`s belief, despite the major economic instability, that the Canadian primary stock index is now continuing to progress and achieving its new highs.
The economy is now on a path to be stable
Senior investment strategist Angelo Kourkafas of Edward Jones has stated that the market`s strength is ongoing buoyancy following the U.S. election. There is uncertainty regarding the implications of Trump`s policies, while the Kourkafas highlighted the strong economic outlook. The environment is now favourable for the market gains as the rates of interest are starting to decline. The economy is on track, and corporate profits are on a surge. Despite any persistent concerns, these factors are still able to provide a perfect base for the continuation of growth. The economic recovery, rising earnings, and accommodative monetary policies indicate a positive mindset of the investors, driving the sustained momentum of the market on the verge of political change.
It is seen that the energy sector has experienced a sharp increase of 2.4 %, which is due to a recovery in oil prices, which also surged by 0.4 % and traded at 68.70 U.S. dollars per barrel. The Paramount Resources-based shares were also increased by around 15.3 % after the announcement of the all-cash deal to sell its oil assets to Ovintin, which is a shared producer, and the deal amount is around 2.38 billion U.S. dollars. The company`s better position in the current market indicates the investor’s belief regarding the continuation of the current position. Also, the major gains in energy stocks have underscored the importance of oil price fluctuations in the market.
At last, the material sector, which includes fertilizers and metal mining firms, has seen a gain of 1 %, and the financial sector has also been up by 0.6 %. The technological-based shares declined by a major 3.5 % after a best of seven sessions. This mixed set of performances from different sectors has indicated sector shifts where investors are trying to balance their gains against pullbacks in the technological stocks.