{"id":55264,"date":"2025-10-29T10:10:24","date_gmt":"2025-10-29T14:10:24","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/bank-of-canada-cuts-rates-amid-tariff-headwinds-nvidia-soars-to-5-trillion-boeing-lands-major-deal\/55264\/"},"modified":"2025-10-29T10:10:24","modified_gmt":"2025-10-29T14:10:24","slug":"bank-of-canada-cuts-rates-amid-tariff-headwinds-nvidia-soars-to-5-trillion-boeing-lands-major-deal","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bank-of-canada-cuts-rates-amid-tariff-headwinds-nvidia-soars-to-5-trillion-boeing-lands-major-deal\/55264\/","title":{"rendered":"Bank of Canada Cuts Rates Amid Tariff Headwinds, Nvidia Soars to $5 Trillion, Boeing Lands Major Deal"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>The <strong>Bank of Canada (BOC) cut its overnight interest rate by 25 basis points to 2.25%<\/strong>, marking its second consecutive reduction this year, driven by <em>economic weakness<\/em> and the significant impact of <em>U.S. trade policies<\/em> on Canadian growth forecasts.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) made history by becoming the world&#39;s first $5 trillion company<\/strong>, fueled by a surge of over 5% in its shares and robust demand for its AI chips.<\/li>\n<li><strong>Korean Air finalized massive aerospace deals, including a $36.2 billion order for 103 new Boeing (<a href=\"\/stock\/BA\">BA<\/a>) aircraft and a $13.7 billion agreement for GE Aerospace (<a href=\"\/stock\/GE\">GE<\/a>) engines<\/strong>, with South Korea also selecting L3Harris Technologies (<a href=\"\/stock\/LHX\">LHX<\/a>) for new aircraft development.<\/li>\n<li><strong>Caterpillar (<a href=\"\/stock\/CAT\">CAT<\/a>) shares rallied 12%<\/strong>, marking their largest gain since 2009, while <strong>Fiserv (<a href=\"\/stock\/FI\">FI<\/a>) experienced a record 44% plunge<\/strong> at market open.<\/li>\n<li><strong>Kraft Heinz (<a href=\"\/stock\/KHC\">KHC<\/a>) CEO expressed concern over &quot;one of the worst U.S. consumer sentiments in decades,&quot;<\/strong> highlighting broader economic anxieties.<\/li>\n<\/ul>\n<p>In a widely anticipated move, the <strong>Bank of Canada (BOC)<\/strong> today lowered its target for the overnight interest rate by <strong>25 basis points to 2.25%<\/strong>, down from 2.50%. This marks the second consecutive rate cut by the central bank, which cited ongoing <em>economic weakness<\/em> and the significant impact of <em>U.S. trade policies<\/em> as primary drivers. Governor Tiff Macklem stated that the cut aims to support the economy through an adjustment to U.S. trade policy while keeping inflation close to the 2% target.<\/p>\n<p>The BOC revised its <strong>2025 growth forecast down to 1.2%<\/strong> from 1.8% in its January Monetary Policy Report, with 2026 growth now projected at 1.1% (versus 1.8%) and 2027 at 1.6%. Roughly half of this downward revision reflects the negative impact of tariffs and uncertainty on potential output, while the remainder is attributed to weaker demand caused by U.S. trade policies. The central bank anticipates annualized Q3 GDP growth at 0.5% and Q4 at 1.0%.<\/p>\n<p>Governor Macklem emphasized the <em>considerable uncertainty<\/em> surrounding U.S. tariffs and their impacts, noting that monetary policy has <em>limited ability to boost demand<\/em> while maintaining low inflation given the damage tariffs are inflicting on Canada&#39;s economic prospects. The BOC expects opposing forces on inflation to largely offset each other, keeping the overall rate near 2%. While preferred measures of core inflation have been sticky around 3%, the BOC&#39;s expanded set of indicators suggests underlying inflation remains around 2.5%, with inflationary pressures expected to ease in the months ahead. The Canadian labor market remains soft, and excess capacity in the economy is expected to persist, being absorbed gradually.<\/p>\n<p>In corporate news, <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> achieved a historic milestone, becoming the <strong>world&#39;s first $5 trillion company<\/strong>. Shares of the AI chipmaker surged over 5% during the day, extending a powerful rally fueled by a flood of announcements reinforcing its dominance in the global AI race. This includes a reported <strong>$500 billion in AI chip orders<\/strong> and plans to build seven supercomputers for the U.S. Department of Energy. Meanwhile, <strong>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>)<\/strong> default swaps jumped on concerns over its AI spending spree.<\/p>\n<p>Aerospace giants also saw significant developments. The White House announced that <strong>Korean Air<\/strong> will purchase <strong>103 new Boeing (<a href=\"\/stock\/BA\">BA<\/a>) aircraft valued at $36.2 billion<\/strong>. Additionally, Korean Air will acquire <strong>GE Aerospace (<a href=\"\/stock\/GE\">GE<\/a>) engines<\/strong> in a separate deal worth <strong>$13.7 billion<\/strong>. South Korea also selected <strong>L3Harris Technologies (<a href=\"\/stock\/LHX\">LHX<\/a>)<\/strong> to develop new aircraft, further solidifying major aerospace contracts.<\/p>\n<p>Elsewhere in the market, <strong>Caterpillar (<a href=\"\/stock\/CAT\">CAT<\/a>) shares extended their rally by 12%<\/strong>, marking their most significant gain since 2009. Conversely, <strong>Fiserv (<a href=\"\/stock\/FI\">FI<\/a>) plunged 44%<\/strong> at the open, experiencing its biggest drop on record. <strong>Kraft Heinz (<a href=\"\/stock\/KHC\">KHC<\/a>) CEO<\/strong> voiced concerns over &quot;one of the worst U.S. consumer sentiments in decades,&quot; reflecting broader economic anxieties impacting consumer spending.<\/p>\n<p>On the commodities front, Rabobank&#39;s estimates for Brazil&#39;s 2025\/26 agricultural season project <strong>soybean planted area up 2% to 48.8 million hectares<\/strong> and the <strong>crop up 3% to 177 million tons<\/strong>. Soybean crush is estimated at a record 60 million tons, while exports are expected to remain unchanged at 111 million tons. For corn, planted area is estimated up 2.2% to 22.2 million hectares, but the crop is seen down 3.5% to 137 million tons.<\/p>\n<p>Major U.S. indices showed modest gains after market open, with the <strong>NASDAQ up 0.67% at 23,986.14<\/strong>, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">DOW JONES<\/a> up 0.22% at 47,812.40<\/strong>, and the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> up 0.26% at 6,908.53<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Bank of Canada (BOC) cut its overnight interest rate by 25 basis points to 2.25%, marking its [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[4179,7359,30,4222,7603,216,4384,7786,338,4385,13157,633,3702,5189,3703,5271,3767,5505,3809,6307,3828,6669,3945,7115],"class_list":["post-55264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-tariffs","tag-bank-of-canada","tag-ge","tag-interest-rates","tag-caterpillar","tag-cat","tag-trade-policy","tag-kraft-heinz","tag-orcl","tag-economic-outlook","tag-ge-aerospace","tag-nvda","tag-nvidia","tag-boeing","tag-ai","tag-market-update","tag-ba","tag-cad","tag-lhx","tag-boc","tag-khc","tag-fiserv","tag-fi","tag-oracle"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/55264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=55264"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/55264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=55264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=55264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=55264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}