Tech sector pushes TSX and U.S. stock markets higher on flattening of bond yields

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Technology drove Canada's main stock index and U.S. markets higher on a levelling of bond yields in response to dovish comments from the U.S. Federal Reserve.
TORONTO --

Minutes from a recent meeting released Wednesday and comments Thursday by Fed chairman Jerome Powell that "didn't rock the boat" helped to convince investors that the central bank is in no hurry to pull back on its monetary stimulus, says Erik Bregar, head of currency strategy at the Exchange Bank of Canada.

"A lot of people said that they kind of got a little too carried away with pricing-in earlier rate hikes but bonds have ... calmed down a little bit this week and that's given an environment for risk-on to continue," he said in an interview.

U.S. 10-year bond yields slipped to 1.628 per cent after rising to as much as 1.746 at the close of March.

The move lower helped the technology sector which thrives in a low bond-yield environment.

It also pushed the S&P 500 and the S&P/TSX composite to new record highs.

The Toronto index gained 99.80 points for a record close of 19,228.87.

In New York, the Dow Jones industrial average was up 57.31 points at 33,503.57. The S&P 500 index was up 17.22 points to a record close of 4,097.17, while the Nasdaq composite was up 140.47 points at 13,829.31.

Canada's technology sector gained 2.7 per cent…
The Canadian Press, Ross Marowits
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