Canadian Stocks Rebound After Early Setback; TSX Gains 2.2%

(RTTNews) - The Canadian market opened on a weak note on Thursday as hot U.S. inflation data raised concerns about aggressive rate hike by the Fed, but stocks recovered swiftly and then kept surging higher and higher to eventually end the session on a buoyant note.

Investors picked up stocks presumably on hopes concerns about inflation and higher interest rates have already been priced into the markets.

The benchmark S&P/TSX Composite Index, which fell to 17,873.18 in early trades, losing nearly 330 points in the process, rallied to 18,661.43 before settling at 18,613.63, gaining 407.35 points or 2.24%.

Energy, financials, communications and utilities shares posted strong gains. Shares from industrials, consumer discretionary, real estate and consumer staples also moved up sharply. A few stocks from technology, healthcare and materials shares gained as well.

Aritzia Inc (ATZ.TO), Methanex Corporation (MX.TO), Precision Drilling Corporation (PD.TO), Imperial Oil (IMO.TO), BCE Inc (BCE.TO), Toronto-Dominion Bank (TD.TO) and Nutrien (NTR.TO) gained 4 to 6%.

Canadian Natural Resources (CNQ.TO), Tourmaline Oil Corp (TOU.TO), National Bank of Canada (NA.TO), Royal Bank of Canada (RY.TO), WSP Global (WSP.TO) and Thomson Reuters (TRI.TO) were among the several other stocks that rallied sharply in the session.

Data from the Labor Department showed consumer prices in the U.S. rose by more than expected in September, raising concerns about the outlook for interest rates. The data said the consumer price index rose by 0.4% in September after inching up by 0.1% in August. Economists had expected consumer prices to edge up by 0.2%.

The report also showed the annual rate of growth by consumer prices slowed to 8.2% in September from 8.3% in August, although the annual rate of growth by core prices accelerated to a 40-year high of 6.6% from 6.3%.