Markets entered Wednesday on a cautious note with investors focused on three major events: retail sales data, energy inventories, and the Federal Reserve meeting. While stock index futures were generally positive in pre-market trading, the broader market remained in a consolidation phase. The Dow, TSX 60, and TSX Composite Index reached new highs, but the broader U.S. market, including the S&P 500 and NASDAQ 100, continued to trade below key resistance levels that would be needed to trigger the next leg higher.
Sector performance remained mixed. Financial stocks continued to strengthen, with Canadian financials reaching new highs and U.S. financials recovering back toward February levels. Meanwhile, semiconductors experienced profit-taking, energy stocks remained under pressure due to declining crude oil prices, and volatility indexes stayed on sell signals, reflecting investor confidence. The market’s next directional move may depend on how traders react to economic data releases and the Fed’s policy announcement later in the day.
