By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rose on Wednesday, rebounding from a 13-month low, led by technology and consumer discretionary stocks, as investors welcomed the Federal Reserve's historically forceful move to tackle soaring inflation.
The Toronto Stock Exchange's S&P/TSX composite index ended up 63.05 points, or 0.3%, at 19,611.56, after five straight daily declines. On Tuesday, it posted its lowest closing level since May 2021.
The Fed raised its target interest rate by three-quarters of a percentage point, its biggest hike since 1994, to stem a disruptive surge in inflation.
"We have seen massive repricing across markets, anticipating this oversized rate hike that the Fed delivered today," said Angelo Kourkafas, investment strategist at Edward Jones.
"Because we are seeing the effect of inflation on real incomes, on economic activity, on spending, etcetera, the markets are welcoming in a sense the fact that central banks are doing something about the issue."
The S&P 500 also rallied and bond yields pulled back from recent multi-year highs.
The Toronto market's technology sector rallied 2.2%, led by a 6.9% gain for e-commerce giant Shopify Inc, while consumer discretionary stocks ended 1.6% higher.
Shares of Bombardier Inc soared 18.3%, clawing back most of the previous day's sharp decline.
But energy shares were a drag, falling 1.3%, as the prospect of lower demand weighed on oil prices. U.S. crude oil futures settled 3% lower at $115.31 a barrel.
(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Paul Simao)