Canada's main stock index eked out a gain on Wednesday as losses in the energy sector weighed on the index, while U.S. markets rose. 

The S&P/TSX Composite Index closed up 3.99 points, or 0.02 per cent, at 20,113.96.

In New York, the Dow Jones Industrial Average was up 184.74 points at 35,273.03. The S&P 500 Index was up 18.43 points at 4,556.62, while the Nasdaq Composite was up 65.88 points at 14,265.86.

“It's been a fairly quiet day today and that's not completely unexpected as we're heading into the U.S. Thanksgiving weekend,” said Kathrin Forrest, equity investment specialist at Capital Group.

However, new economic data released in the U.S. on consumer inflation expectations and jobless claims helped paint a picture of ongoing rate uncertainty, she said.

Investors continue to expect central banks to start cutting mid next year, said Forrest.

“There continues to be noise around that and we certainly see volatility as we look a bit further out the curve,” she said.

“Rate volatility is something that we continue to see.”

November has so far been significantly more positive for equities than October, helped by a softening in longer-term rates, said Forrest.

“The U.S. 10-year yields have come down quite a bit over the course of November. And that tends to be helpful for markets in general,” she said. 

Data released around the end of October led market participants to gain more confidence in the possibility of a soft landing for the economy, she said.

In a speech Wednesday, Bank of Canada governor Tiff Macklem said higher rates are relieving price pressures throughout the economy. He said inflation can’t be fought half-heartedly.

“The big takeaway for me was that the Bank of Canada is looking to stay the course, and continue to be data dependent,” said Forrest.

Shares in Nvidia Corp. were down Wednesday despite the company reporting strong profits for the last quarter.

Higher U.S. commercial crude stocks put downward pressure on oil Wednesday, Forrest noted, amid broader uncertainty for the commodity.

The Canadian dollar traded for 72.87 cents U.S. compared with 73.00 cents U.S. on Tuesday.

The January crude oil contract was down 67 cents at US$77.10 per barrel and the January natural gas contract was up four cents at US$3.03 per mm/BTU.

The December gold contract was down US$8.80 at US$1,992.80 an ounce and the December copper contract was down five cents at US$3.76 a pound.

With files from The Associated Press

This report by The Canadian Press was first published Nov. 22, 2023.