Stock Market Today: Stocks Finish Mixed After Bank of Canada's Surprise Rate Hike
Canada's central bank unexpectedly lifted interest rates after pausing them earlier this year.


Stocks started Wednesday higher but retreated as the session wore on as a surprise rate hike from the Bank of Canada lifted expectations the Federal Reserve will hike interest rates at its upcoming meeting.
Not helping matters was a spike in Treasury yields, which had an outsized effect on tech stocks.
"The Bank of Canada is a leading central bank," says Edward Moya, senior market strategist at currency data provider OANDA, adding that they were the first among their global peers to raise interest rates in 2022 and the first to pause earlier this year.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Canada's central bank restarting its tightening cycle and signaling more rate hikes could come down the pike in order to tamp down stubbornly high inflation has many rethinking what the Fed will do, Moya says.
At last check, futures traders were pricing in a 31% chance for a quarter-point rate hike at the next Fed meeting, up from 22% yesterday and 26% one week ago. But even if the Fed pauses at its upcoming gathering, the probability for a 0.25% rate increase at the July meeting is over 50%, according to CME Group.
Treasury yields spike
Increasing expectations for higher interest rates lifted Treasury yields on both 2-year (+2.5 basis points to 4.55%) and 10-year (+9.3 basis points to 3.793%) notes. This, in turn, dragged on technology (-1.5%) and communication services stocks (-1.1%).
Not surprisingly, the tech-heavy Nasdaq Composite was the worst performer of the major indexes, shedding 1.3% to 13,104.
The S&P 500 (-0.4% at 4,267) also finished in the red, while the Dow Jones Industrial Average gained 0.3% to 33,665 on strength in industrial stock Caterpillar (CAT, +3.9%) and big bank Goldman Sachs Group (GS, +2.7%).
Nvidia a top stock pick of billionaire investors
Each quarter, we take a look at regulatory filings to see what the smart money is doing. We've uncovered the stocks Warren Buffett is buying and selling in the Berkshire Hathaway equity portfolio, as well as the best blue chip stocks that hedge funds bought in the first quarter.
Most recently, we took a deep dive to see what were some of the top stock picks of billionaire investors at the start of the year. Spoiler alert: they are some of the biggest and best tech stocks on Wall Street.
One particular standout was Nvidia (NVDA), which is a favorite of Philippe Laffont's Coatue Management. The hedge fund has owned NVDA since 2016 and upped its stake in the semiconductor stock by 7% in Q1, which followed a 37% increase in Q4. It's easy to see why the smart money is clamoring for a piece of Nvidia's pie. Not only has it more than doubled in value for the year-to-date, but it's been one of the best stocks of the past 30 years.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
How to Manage the Cost of Your Child's Wedding
As the price of getting married soars, footing the bill is becoming a true family affair.
-
Average 401(k) Fund Fees: Are You Overpaying?
Average 401(k) fund fees and administrative expenses are, in some cases, shockingly high. But don't be misled by gloomy headlines. Here's the skinny.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market Today
The world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market Today
The AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market Today
The White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Stocks Struggle to Start Nvidia Week: Stock Market Today
Another important week for the stock market starts on a risk-off note.
-
Nvidia Earnings: Updates and Commentary August 2025
Nvidia reported solid fiscal second-quarter earnings showing that AI demand is going strong.
-
Dow Rips 846 Points to New All-Time High: Stock Market Today
Fed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market Today
We've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market Today
Quietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.