On May 5, the Canadian stock market experienced a slight pullback. The S&P/TSX composite index on the Toronto Stock Exchange dropped 27.99 points, or approximately 0.3%, closing at 24,953.52, bringing an end to the previous day's upward trend.
Canadian Stocks Retreat Slightly Amid Oil Price Decline and Service Sector Woes
On May 5, the Canadian stock market experienced a slight pullback. The S&P/TSX composite index on the Toronto Stock Exchange dropped 27.99 points, or approximately 0.3%, closing at 24,953.52, bringing an end to the previous day's upward trend. Ahead of the Federal Reserve's impending interest rate decision, investors generally reduced their risk exposure. Colin Cieszynski, the chief strategist at SIA Wealth Management, stated that part of the correction was due to profit - taking, and the market's expectation that the Federal Reserve would not cut interest rates cooled down.
Source: Images from the Internet, if there is any infringement, please contact the removal of
Meanwhile, Canada's service sector shrank for the fifth consecutive month in April, indicating that the uncertainties in trade policies and the federal election continue to weigh on the economy. In terms of industry performance, the energy sector declined by 2.7% due to OPEC+'s accelerated production increase and the nearly 2% drop in oil prices. The industrial sector also fell 0.7% as railway stocks weakened. The only bright spot was the materials sector, which rose 1.6% due to the rebound of gold prices above $3,300 per ounce. In addition, the US - based Sunoco announced its plan to acquire Parkland for approximately $9.1 billion (including debt), causing the latter's stock price to surge 5.5%.
The overall performance of the Canadian stock market on May 5 reflects the combined influence of various factors such as the international oil price trend, the domestic service sector situation, and external events like the Fed's interest rate decision - making and corporate mergers and acquisitions. Investors are closely watching these factors to make more informed decisions in the future.
