TSX closes higher; Nvidia results lead to after-hours drop

Investing.com - Canada’s main stock exchanges closed higher Wednesday, with investors awaiting the release of earnings from tech giant Nvidia, which could direct sentiment over the near term. 

By the 4:00 ET close, the Toronto Stock Exchange’s S&P/TSX composite index gained 93 points or 0.3%, having closed Tuesday 0.6%, or 170 points, higher.

The S&P/TSX 60 rose by 6.6 points or 0.4%, after closing higher by 0.7% on Tuesday.

Nvidia (NASDAQ:NVDA), a key barometer of the artificial intelligence (AI) boom, reported earnings that beat expectations in eps and revenue, but data center revenue slightly disappointed, causing a drop of over 2% in the stock in after-hours trading.

Looking ahead, the company forecast fiscal 2026 third-quarter revenue of $54 billion, plus or minus 2%, beating estimates of $52.76B. The guidance excludes H20 chip sales to China, the company said, adding uncertainty on the chipsales outlook to China.

After driving markets higher for much of the year, technology stocks have cooled this month as investor enthusiasm cooled. Nvidia’s results are likely to set the tone for near-term risk appetite as they will offer evidence as to whether the sky-high valuation for AI darlings is justified.

Following Nvidia downward were several chip and AI infrastructure-related stocks, including AMD, Taiwan Semiconductor, Broadcom, Micron, ASML, Intel, Vertiv, and more. 

Elsewhere, the Bank of Canada will not review its inflation target when its monetary policy framework comes up for renewal next year, Governor Tiff Macklem said, saying the current target has helped anchor inflation expectations.

The central bank and the finance ministry jointly review the target every five years and formally announce a decision, with the next review set for 2026.

The BoC, as per its mandate, aims to keep inflation at 2%, the mid-point of its 1%-3% target range, and Macklem said while the bank was asking a number of questions before the review next year, the 2% target will not be considered.

In Wednesday morning earnings, Royal Bank of Canada followed Scotiabank and BMO in reporting results that exceeded analyst expectations. RBC reported adjusted EPS of C$3.84, C$0.52 higher than anticipated, and nearly a billion dollars more than expected in revenue. 

RBC stock gained 5.1% in Toronto trade following the results.

In other news, Newmont Goldcorp was reported to be targeting significant cost reductions, potentially as much as $300 per ounce, through job cuts, Bloomberg said. Sources told Investing.com the previously-announced initiative is focused on aligning operations and focused on long-term outlook, not on meeting a $300 per ounce target. 

Canada Goose to go private?

Canada Goose’s controlling shareholder Bain Capital has received bids to take the luxury goods maker private at a valuation of about $1.4 billion, according to a report by CNBC.

Private equity firm Bain, which acquired a majority stake in Canada Goose (NYSE:GOOS) in 2013, is looking to offload its holding and Goldman Sachs is advising on the sale, though the final decision is on hold till more offers roll in, the report said.

Canada Goose is valued at $1.18 billion, according to LSEG data. The company’s stock closed nearly 16% higher on Wednesday.

Crude higher; gold gains

Oil prices rebounded after hefty losses in the prior session as traders weighed hefty new U.S. tariffs on India, the world’s third-biggest crude consumer.

At 5:25 ET, Brent futures rose 0.7% to $67.21 a barrel, and U.S. West Texas Intermediate crude futures jumped 0.9% to $63.84 a barrel.

Both contracts fell over 2% on Tuesday after beginning the week on a two-week high.

Gold prices continued rising over its two-week high as Trump’s attempts to fire a Federal Reserve Governor sparked renewed concerns over the central bank’s independence. 

The dollar tumbled after Trump’s move, but the greenback has recouped its losses, while Treasury yields also stabilized, as Cook and the Fed argued that Trump had no authority for the firing. 

Spot gold ticked up 0.1% to $3,397.46 an ounce, while gold futures for October gained 0.6% to $3,451.85/oz as of 5:25 ET. 

(Luke Juricic also contributed reporting to this article)