Canadian Stocks Close Higher Following Late-Day Rebound

(RTTNews) - After moving to the upside early in the session, Canadian stocks came under pressure over the course of the trading day on Friday before rebounding going into the close.

The benchmark S&P/TSX Composite Index surged in the latter part of the trading session, closing up 118.69 points or 0.5 percent at 23,346.18, just shy of the record closing high set on Monday.

The higher close on Bay Street came after the Commerce Department released readings on U.S. consumer price inflation that are said to be preferred by the Federal Reserve.

The Commerce Department report showed consumer prices increased in line with economist estimates in the month of July, while the annual rate of price growth was unexpectedly flat.

While the data has reinforced expectations of an interest rate cut by the Fed next month, traders expressed uncertainty about the pace of rate cuts, leading to some volatility in the markets.

Technology stocks helped lead the way higher, with the S&P/TSX Capped Information Technology Index jumped by 1.3 percent.

Consumer discretionary and financial stocks also saw considerable strength on the day, while energy stocks moved sharply lower amid a steep drop by the price of crude oil.

Crude for October delivery plunged $2.36 or 3.1 percent to $73.55 a barrel after a report from Reuters said the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is set to proceed with a planned oil output hike from October.

In Canadian economic news, Canadian real gross domestic product increased 0.5 percent in the second quarter after rising 0.4 percent in the first quarter.