Stock market rally boosts stocks in December


The S&P 500 index jumped 5.7 per cent to 2,932.09 on Wednesday, its biggest percentage gain since January, as investors flocked to buy stocks, driven by strong job gains and a recovery in the housing market.

The benchmark S&amps stock index jumped more than 4 per cent on Tuesday, the biggest percentage jump since October.

That followed a 3.9 per cent gain on Wednesday.

Investors were also taking advantage of stronger U.S. growth and stronger inflation, which boosted demand for commodities and equipment, while also helping to lift oil prices.

The S&amping index rose 2.6 per cent for the month, its largest monthly gain since November.

Investor confidence is at an all-time high, the S&acks share price has climbed by more than 40 per cent in a year and the U.K. stock market has risen more than 50 per cent over the past year.

“I think the recent rally is just another part of a long-term trend, but I also think there’s a lot of room for improvement in the U of T stock market,” said Mark Smith, chief investment officer at the Ontario Stock Exchange, adding that the recent gains are a sign of optimism and optimism is not necessarily good for a market like Canada’s.

“It’s a sign that there is a lot more optimism than I think is warranted.”

A recent survey from Bank of America Merrill Lynch showed the Canadian stock market had a solid chance of making a profit this year, although it’s uncertain if that will be enough to propel the market.

“They’re not the next bubble, but the next correction is coming,” said David Cairns, an analyst at Bank of Montreal.

“There’s a fair bit of uncertainty around that one, but there’s also a fair amount of optimism in the markets.”

Some investors have started buying into stocks in anticipation of another rebound in the Canadian economy, as well as the potential for the U in the event of a global recession.

Canadian Prime Minister Justin Trudeau has urged the country’s corporate sector to increase its spending, while the Bank of Canada has lowered interest rates and raised its benchmark lending rate.

Trudeau is also seeking to help businesses and entrepreneurs by launching a new tax credit program aimed at helping them reduce the cost of doing business.

The dollar has dropped more than a quarter against the greenback, falling to 71.7 cents US from 81.8 cents US.

The Canadian dollar has strengthened against other major currencies as traders have begun to take advantage of a weaker Canadian dollar.

The greenback has gained more than 70 per cent against the U, and is now trading at a five-year high of 82.50 US cents.