Marvell shares spike amid report SoftBank explored possible takeover
Investing.com - Canada’s main stock index rose on Thursday to a fresh record high, extending gains from the prior session after closing above the 30,000 mark for the first time earlier this week.
The S&P/TSX composite index was up 52 points or 0.18% at 30,160.59.
Index last closed higher by 0.3%, ending at 30,107.67, exceeding an all-time peak logged on Tuesday.
Partially underpinning the gains was the materials sector, which folds in shares in metal mining companies. The segment has been bolstered recently by a surge in the price of gold to its own record highs, with bullion’s safe-haven appeal burnished by a U.S. government shutdown and expectations for further Federal Reserve interest rate cuts this year.
Wall Street stocks steady
U.S. stock index steadied near record levels, with investors largely shrugging off an ongoing U.S. government shutdown amid raised hopes of more Fed rate cuts before the end of 2025.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average traded 0.2% higher. while the S&P 500 index rose 0.1% to a fresh closing record of 6,715.80, while the NASDAQ Composite rose 0.4%. .
All three benchmarks rose for a fourth consecutive session on Wednesday, with the broad-based S&P 500 closing at a record high, with investirs appearing to be little deterred by the shutdown.
U.S. government shutdown continues
U.S. government agencies began shutting down from early-Wednesday after Congress failed to approve fresh funding.
Services ranging from air traffic control to disaster relief are expected to be disrupted, while key nonfarm payrolls data due on Friday is also expected to be delayed.
It remained unclear just how long the shutdown will last, given that Democrats and Republicans in the Senate appeared no closer to reaching consensus on a spending bill.
President Donald Trump added to the divide by threatening to cut off funding for Democrat-leaning states and fire scores of federal workers permanently.
Shutdowns have historically had limited impact on financial markets and the economy. The last shutdown occurred during Trump’s first term– for a span of 35 days between late-2018 and early-2019– and was the longest in U.S. history.
The shutdown cost the economy about $11 billion, the Congressional Budget Office estimated.
The betting website Polymarket indicates the highest likelihood that the standoff will last between one or two weeks, though there is currently a 34% probability of a longer shutdown, with just over $1.2 million wagered.
Labor market weakness drives rate cut talk
One key consequence of the continuing U.S. government shutdown has been the potential delay to the release of key economic indicators, including the monthly nonfarm payrolls report slated for Friday.
That means that other private figures, such as Thursday’s Challenger layoffs data, may receive more attention than usual.
Earlier this week, the ADP National Employment Report showed the largest decline in private payrolls in two-and-a-half years during September. One of the last officials readings -- A gauge of job openings -- increased marginally in August while hiring declined.
The Fed has been keeping close tabs on labor market numbers as officials assess the outlook for monetary policy. Borrowing costs were reduced by 25 basis points last month, with policymakers highlighting the need to prioritize supporting a flagging jobs picture over sticky inflationary pressures.
The weak economic prints have driven persistent bets that the Federal Reserve will continue to cut interest rates in the two remaining policy meetings left this year.
Pharma in focus
In the corporate sector, the major pharmaceutical companies are likely to remain in the spotlight Thursday, with a rally in the segment starting earlier in the week when U.S. pharmaceutical giant Pfizer (NYSE:PFE) saying it had reached a deal with President Donald Trump to lower prescription drug prices in the Medicaid program in return for tariff relief.
Trump indicated that he expects more drugmakers will do the same.
Elsewhere, OpenAI was valued at $500 billion after a secondary share sale worth about $6.6 billion, according to various news reports citing sources familiar with the matter.
The deal makes the ChatGPT-maker the world’s most valuable startup, surpassing Elon Musk’s rocket firm SpaceX, which was recently valued at about $400 billion.
Crude continues to fall
Oil prices slipped, adding to recent losses and overturning earlier gains following the raised potential for tighter sanctions on Russian crude.
Brent futures slipped 0.5% to $65.01 a barrel, and U.S. West Texas Intermediate crude futures fell 0.5% to $61.46 a barrel. Both benchmarks lost about 1% in the prior session, with Brent closing at its lowest since June 5 and for WTI since May 30.
The Group of Seven nations’ finance ministers said on Wednesday they will take steps to increase pressure on Russia by targeting those who are continuing to increase their purchases of Russian oil and those that are facilitating circumvention.
However, the U.S. government shutdown has heightened worries about the global economy, while expectations of higher output by OPEC+, the Organization of the Petroleum Exporting Countries and allied producers, weighed on sentiment.
Gold near all-time high
Gold prices hovered near record highs as safe-haven demand remained underpinned by the U.S. government shutdown and growing conviction in more interest rate cuts.
Spot gold edged up by 0.4% to $3,881.51 an ounce, while gold futures for December rose 0.2% to $3,906.02/oz by 07:00 ET. The yellow metal has hit a series of peaks this week.
The U.S. government is expected to remain shut for at least three days, disrupting several federal operations across the country. Senate lawmakers also appeared to have marked little progress towards reaching consensus on a spending bill.
A prolonged shutdown could hurt the U.S. economy with disruptions in essential services. Trump’s threats of firing more federal workers also stand to further hurt the labor sector.