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TORONTO — Canadian and U.S. stock markets rose on Tuesday helped by investor optimism for AI.
Brianne Gardner, senior wealth manager of Velocity Investment Partners at Raymond James Ltd., said that markets appeared to be recalibrating around AI expectations and trade policies.
Shares of Thomson Reuters Corp. rose 11.38 per cent after it said one million professionals are using its CoCounsel AI technology. The stock had faced some pressure earlier this month, with investors weighing the potential impact of AI disruption.
“We’re seeing a lot of companies investing hundreds of millions, if not billions, of dollars into AI and now to see Thomson Reuters really monetizing it at scale is very positive,” Gardner said.
Separately, Scotiabank shares were down 0.66 per cent on Tuesday after the lender reported a jump in first-quarter profit, though its Canadian banking segment showed rising financial stress for consumers.
“Scotiabank beat earnings, but we saw the stock slip back a little bit as it looks like investors are really focusing more on those higher provisions and softer revenue,” said Gardner.
Canada’s other large banks are scheduled to report earnings this week, with results from BMO Financial Group and National Bank of Canada set to come on Wednesday. CIBC, Royal Bank and TD report results on Thursday.
The S&P/TSX composite index was up 193.88 points at 33,970.38.
In New York, the Dow Jones industrial average was up 370.44 points at 49,174.50. The S&P 500 index was up 52.32 points at 6,890.07, while the Nasdaq composite was up 236.41 points at 22,863.68.
U.S. stocks rose Tuesday after getting a reminder that the artificial-intelligence boom may also have an upside.
“After we saw yesterday’s sharp sell-off on Monday, we really saw the software and semis out of the U.S. rebound, which is good to see,” Gardner said.
Advanced Micro Devices helped lead the market and rallied 8.8 per cent after announcing a multiyear deal where it will supply chips to Meta Platforms to help power its AI ambitions. Under the agreement, Meta also got the right to buy up to 160 million shares of AMD stock for one cent US each, depending in part on how many chips Meta ultimately buys.
It’s a reminder of the excitement that built in recent years about the billions of dollars pouring into AI, which could remake the world and create a more productive economy.
It also helped produce a sharp turnaround from the prior day, when worries about the potential downsides of AI shook Wall Street, particularly companies and industries that investors fear could be made obsolete.
