The Toronto stock exchange followed a powerful buying spree of stocks in New York today. Investors returned billions of dollars into the markets after the steepest losses in four years over the past week.
The Dow Jones made it’s third largest daily gain in dow’s history. It racked up 619 point gain closing at $16 286.
Technology companies led the gains in New York with Apple, Google. and Intel rising more than 4%. Amazon.com surged more than 6%, and Netflix posted a 2 day of 11%.
Shares of energy companies led the recovery in Canada along with a strong rise in bank shares after Bank of Montreal, Royal Bank and National Bank reported better-than expected third quarter profits.
One incentive fueling today’s rally is the new belief that the first American interest rate hike in 6 years expected next month, will likely be delayed because of volatility in world financial markets.
Market observers say the test of today’s rebound will be tomorrow to see if today’s gains will hold or if investors will be spooked into another selloff