The S&P/TSX composite index rose on Wednesday, even as oil prices fell. This was due to gains in sectors like technology and consumer discretionary. Oil prices dropped to $70.52 per barrel for West Texas Intermediate crude futures.
There are worries about too much supply and lower demand. This caused some losses for energy stocks. U.S. stock markets went up though.
The S&P 500 and Nasdaq increased. Strong earnings reports from big tech companies helped.
Composite index rise despite oil decline
Positive economic data showed consumer spending is still high and the job market is doing well. The Federal Reserve has hinted it may slow down interest rate hikes. Investors liked this news.
Lower borrowing costs could mean more economic growth. It also encourages people to invest in stocks. The day’s trading showed optimism in tech and financial sectors.
This balanced out weaker performance in energy because of lower oil prices. As North American markets deal with changing commodity prices, gains across different sectors provide some protection against ups and downs in specific areas.
