The S&P TSX composite index screen at the TMX Market Centre in downtown Toronto is photographed on Friday, November 11, 2022. THE CANADIAN PRESS/ Tijana Martin

TORONTO - Canada's main stock index gained almost 150 points on Wednesday, buoyed by strength in the financial and technology sectors despite weakness in energy stocks, while U.S. markets also rose.

The S&P/TSX composite index was up 145.06 points at 19,588.83.

In New York, the Dow Jones industrial average was up 133.40 points at 33,269.77.The S&P 500 index was up 28.83 points at 3,852.97, while the Nasdaq composite was up 71.78 points at 10,458.76.

Minutes from the Federal Reserve’s December meeting released Wednesday didn’t hold any surprises, said Mona Mahajan, senior investment strategist at Edward Jones.

The minutes showed Fed officials citing strong hiring data as a reason to continue raising interest rates in 2023.

“It’s certainly reinforced the message that officials have been going with for months now,” said Mahajan.

“I think the higher-for-longer message is still in play. And I think that’s still weighing on sentiment broadly.”

The markets have priced in two or three more hikes already, said Mahajan, adding that she expects the second half of the year could bring a pause in rate hikes if the data bears that out.

“This week, there will be a huge focus on the labour market,” said Mahajan, noting that both Canada and the U.S. are set to release new data.

Any sign that the market is softening will be seen as good news by investors in terms of the scope of the next interest rate hike, she said.

Oil prices were down again Wednesday, but again the TSX held its ground despite being heavily influenced by energy. The energy index was down 1.67 per cent after sliding almost six per cent on Tuesday, while the finance index was up 1.30 per cent and information technology was up 1.51 per cent.

The February crude contract was down US$4.09 at US$72.84 per barrel and the February natural gas contract was up 18 cents at US$4.17 per mmBTU.

Oil continues to be sensitive to news coming out of China, as the country’s economic reckoning, which led to higher oil prices late in 2022, is being dampened by rising COVID-19 cases.

"We're also seeing perhaps the Chinese reopening will be a slower process than many anticipated, maybe the demand isn't going to be as robust," said Mahajan.

The Canadian dollar traded for 74.03 cents US compared with 73.22 cents US on Tuesday.

The February gold contract was up US$12.90 at US$1,859.00 an ounce and the March copper contract was down three cents at US$3.74 a pound.

This report by The Canadian Press was first published Jan. 4, 2023.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)

News from © The Canadian Press, 2023