Canada’s main stock exchange was higher on Wednesday, with U.S. bank earnings and surge in gold prices to new all-time highs.
Track Canadian stocks with InvestingPro The S&P/TSX composite index gained 46 points or 0.14% at 32,916.47.
Index slipped marginally by 0.01% to end at 32,870.36 in the prior session, pulling back from a record high logged on Monday.
Safe-haven demand for gold helped give lift to resource stocks in the commodity-heavy index and offset a drop in financial sector names, which were weighed down by a warning from JPMorgan Chase that U.S. President Donald Trump’s proposed cap on credit-card interest rates could dent banking industry returns and consumers alike.
U.S. stocks lower
The Dow Jones Industrial Average dropped 154 points, or 0.3%, the S&P 500 index fell 0.8%, and the NASDAQ Composite slipped 1.4%.
The main averages declined on Tuesday, with the blue chip Dow Jones Industrial Average dropping almost 400 points, or 0.8%, the S&P 500 falling 0.2% and the Nasdaq Composite shedding 0.1%.
On the earnings front, Bank of America, Wells Fargo and Citigroup are all set to report before the market opens.
The prints will be closely watched for more cues on the U.S. economy, as well as acting as barometers of sentiment in the opening weeks of 2026. Banking major JPMorgan Chase started the quarterly results season rolling on Tuesday.
JPMorgan, the largest U.S. bank, posted a decline in fourth-quarter profit, dragged down by provisions related to its acquisition of a credit card partnership with Apple from Goldman Sachs. The lender also warned of the impact President Donald Trump’s proposed cap on credit card interest rates could have on industry returns and consumers.
This warning weighed on broader financial stocks.
Analysts may be on the lookout for any commentary around the independence of the U.S. central bank, which has become a central focus since the Trump administration launched a criminal investigation into Fed Chair Jerome Powell. The Fed leader has said the move was motivated by a desire to influence how policymakers set interest rates.
JPMorgan CEO Jamie Dimon backed an independent Fed, saying anything that "chips away" at its ability to adjust policy free of political influence "is not a good idea."
Producer inflation data due
Beyond bank earnings, producer price index inflation data for December is also due on Wednesday.
The print comes just a day after consumer price index inflation data read largely in line with expectations for December, while core CPI cooled slightly.
The CPI print did little to shift expectations that the Fed will keep interest rates steady in January. Traders are pricing in a 95.4% chance the Fed leaves rates between 3.50% and 3.75% in its end-January meeting, CME FedWatch showed.
Gold jumps
Elsewhere, gold prices scaled fresh record highs as the U.S. inflation data cemented expectations for Fed rate cuts later this year and geopolitical tensions in Iran underpinned safe-haven demand.
Spot gold had risen by 0.9% to $4,628.45, inching down a record high notched earlier in the session. U.S. Gold Futures advanced 0.9% to $4,639.05/oz.
So-called core U.S. consumer prices, stripping out volatile items like food and fuel, rose 0.2% in December and 2.6% year-on-year, below forecasts, reinforcing bets for future rate reductions. Markets now price in roughly two rate drawdowns in 2026.
Lower rates tend to benefit non-yielding assets such as gold by reducing their opportunity cost.
Geopolitical risks also remained firmly in focus. Iran has been gripped by intensifying anti-government protests that have reportedly killed around 2,000 people, raising fears of wider instability in the Middle East.
Concerns over the independence of the Federal Reserve following the opening of a criminal investigation into Chair Jerome Powell further supported bullion.
Oil rebounds
Oil prices bounced after a decline earlier in the session, as developments in Iran remained in focus.
Brent futures were last up 1.3% at $66.30 a barrel and U.S. West Texas Intermediate crude futures had jumped 1.3% to $61.92 a barrel.
Both contracts surged more than 2.5% on Tuesday, pushing Brent to an 11-week high and WTI to a 10-week peak, extending strong gains over four consecutive sessions.
Crude stocks in the U.S., the world’s biggest oil consumer, rose by 5.23 million barrels in the week ended January 9, the American Petroleum Institute reported on Tuesday. Official stockpile data from the U.S. Energy Information Administration will be released later on Wednesday.
The mounting protests in Iran have increased fears of supply disruptions from the fourth-largest OPEC producer.
