S&P/TSX composite up more than 100 points, U.S. stock markets also rise

Markets look to rebound

Canada's main stock index posted a triple-digit advance in late-morning trading as gains in the energy and technology sectors helped lead the market higher, while U.S. stock markets also gained ground.

The S&P/TSX composite index was up 135.28 points at 20,667.46.

In New York, the Dow Jones industrial average was up 298.44 points at 32,935.63. The S&P 500 index was up 64.39 points at 4,122.23, while the Nasdaq composite was up 276.92 points at 12,017.57.

The Canadian dollar traded for 78.42 cents US compared with 78.17 cents US on Thursday.

The July crude oil contract was down 64 cents at US$113.45 per barrel and the July natural gas contract was down 22 cents at US$8.68 per mmBTU.

The August gold contract was up US$2.30 at US$1,856.20 an ounce and the July copper contract was up four cents at US$4.30 a pound.

The Wall Street rally kept the market on track for its first weekly gain after seven weeks of losses.

The gains were broad, led by technology stocks. Apple rose 3.3% and Microsoft rose 2.2%. Retailers also made solid gains as Wall Street continues reviewing the latest round of earnings to get a better sense of just how much pain rising inflation is inflicting on businesses and consumers. Beauty products company Ulta Beauty surged 11% after raising its profit forecast for the year. Amazon rose 2.8%.

European markets were higher and Asian markets closed higher overnight.

The broader market has been in a slump for nearly two months as concerns about inflation and rising interest rates pile up. Investors were spooked last week by disappointing reports from key retailers, including Walmart and Target, which stoked fears about rising inflation hitting profit margins and crimping consumer spending.

Inflation is at a four-decade high and has been persistently squeezing businesses. Higher costs prompted companies to raise prices on everything from food to clothing to protect their margins and consumers remained resilient. Russia's invasion of Ukraine worsened the inflation picture by pushing global energy and food prices even higher.

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