S&P/TSX composite rises 1.5% in Toronto

Canada's main stock index, the S&P/TSX composite, rose by 1.5% on Wednesday. This increase came on the heels of a rally in U.S. stock markets. The boost followed the U.S. Federal Reserve's decision to keep its interest rate outlook unchanged for the year. John Zechner, the chairman at J. Zechner Associates, noted that the market seemed to be experiencing a relief rally. Many investors had been concerned following recent sharp market declines. The S&P/TSX composite closed up 363.14 points at 25,069.21. Meanwhile, in the U.S., the Dow Jones industrial average was up 383.32 points, and the S&P 500 rose by 60.63 points. The Federal Reserve held its key interest rate steady and communicated that the U.S. economy remains robust. Fed Chair Jerome Powell stated that the central bank's current policy is well-positioned to adapt to future economic conditions. The Fed did revise its growth expectations downwards, but still anticipates two interest rate cuts this year. Despite the positive news, there are lingering concerns about U.S. tariff policies under President Trump. Investors are particularly focused on an upcoming deadline for new tariffs. In Canada, the Bank of Canada recently cut interest rates, with a faster pace compared to the U.S. As economic conditions worsen, they face challenges with inflation and growth. The Canadian dollar was trading around 69.80 cents US. In commodities, crude oil prices rose slightly, while natural gas and gold also showed small increases. Overall, Wednesday brought a sense of cautious optimism to the markets.