S&P/TSX Gains Almost 100 Points, U.S. Markets Also Higher Ahead of Rate Decision

Strong Commodities Boost TSX

The S&P/TSX Composite Index gained almost 100 points on Tuesday, led by gains in the energy and materials sectors. Energy stocks rose 2.2% as oil prices climbed to their highest level since 2014. Materials stocks also gained 1.8%, as gold prices rose. The TSX is now up more than 5% for the year.

U.S. Markets Rise on Earnings Optimism

U.S. markets also rose on Tuesday, with the Dow Jones Industrial Average gaining 150 points, the S&P 500 gaining 20 points, and the Nasdaq Composite gaining 30 points. The gains were led by strong earnings reports from major companies, including Coca-Cola and UnitedHealth.

Rate Decision Looms

The gains in both the TSX and U.S. markets came ahead of the Federal Reserve's interest rate decision on Wednesday. The Fed is widely expected to raise rates by 50 basis points, which would be the biggest increase since 2000. The decision is likely to have a major impact on markets, as it will signal the Fed's commitment to fighting inflation.

Market Outlook

Analysts say that the market is likely to remain volatile in the near term, as investors await the Fed's decision and other key economic data. However, they believe that the long-term outlook for the market is positive, as the economy continues to recover from the pandemic.

Conclusion

The TSX and U.S. markets rose on Tuesday, led by strong earnings reports and optimism about the economy. However, investors are likely to remain cautious in the near term, as they await the Fed's interest rate decision on Wednesday.