Trading Day for Wednesday, Jan. 28, 2026

Key Concepts

• Bank of Canada (BoC) Interest Rate: Held steady at 2.25%.
• Hydro One Transmission Line: New project in Northern Ontario, expected completion by 2032, with First Nations equity participation.
• Agnico Eagle Mines & Gold Sky Resources: Agnico selling its Swedish ore gold project to Gold Sky for $20M USD + shares.
• Market Performance: TSX slightly down, S&P 500 briefly touched 7000, Dow and Nasdaq mixed.
• Artemis Program: NASA’s mission to return humans to the Moon, with Artemis Two crew including Canadian astronaut Jeremy Hansen.
• Federal Reserve (Fed) Policy: Anticipated to hold rates steady, focus on economic uncertainty and potential rate cuts later in the year.
• Northwood: Company providing ground infrastructure for the space industry, secured $100M Series B funding.
• Seagate: Stock up over 20% due to strong results and positive demand outlook.

Bank of Canada Rate Decision & Economic Outlook

The Bank of Canada held its key interest rate steady at 2.25% today, despite rising inflation (around 3%) and unemployment in December. Policymakers maintain that borrowing costs are at an appropriate level to support growth while keeping inflation near the 2% target, a message consistently reiterated since October. Governor Tiff Macklem noted that the forecast for economic growth hasn’t changed significantly since October 2024. However, Macklem acknowledged increased uncertainty, citing unpredictable U.S. trade policy and elevated geopolitical risks. He also highlighted a relatively weak labour market, though stronger than at the beginning of 2025, and slower population growth potentially impacting employment rates. Businesses are currently not significantly increasing hiring. The BoC remains data-dependent and prepared to adjust policy if necessary, but no immediate rate changes are anticipated. The timing of potential rate cuts remains uncertain, heavily influenced by upcoming renegotiations.

Quote: “The range of possible outcomes is wider than usual. U.S. trade policy remains unpredictable. Geopolitical risks are also elevated.” – Tiff Macklem, Bank of Canada Governor.

Corporate Developments

• Hydro One: Will construct a new priority transmission line in the Greenstone region of Northern Ontario, slated for completion by 2032. This project aims to increase capacity, improve reliability, and foster economic development. Notably, First Nations leadership will participate in decision-making and have the opportunity to invest up to 50% equity in the project.
• Agnico Eagle Mines, Gold Sky Resources & Ore Gold Project: Agnico Eagle Mines is selling its majority stake in the Ore Gold project in Sweden to Gold Sky Resources for $20 million USD plus 75.5 million common shares. The transaction is expected to close by June 30th.
• Seagate: Experienced a significant stock increase (over 20%) following strong financial results and a positive outlook on demand and pricing, projecting no slowdown into 2027.

Market Snapshot

Heading into the afternoon, markets were relatively flat. The TSX was slightly down but remained above 33,000, near its record high. South of the border, the S&P 500 briefly surpassed 7000 before retreating, while the Dow and Nasdaq showed mixed performance. Investors are awaiting the Federal Reserve’s announcement.

NASA’s Artemis Program & Lunar Exploration

NASA is preparing to send astronauts, including Canadian Jeremy Hansen, back to the Moon with the Artemis Two mission – the first crewed lunar mission in over 50 years. The Artemis program aims to establish a sustainable presence on the Moon, learning to live off the lunar surface and preparing for eventual missions to Mars. Artemis Two will test the Orion spacecraft, crucial for future lunar landings. The program has faced criticism regarding its cost (approximately $93 billion between 2012 and 2025) and timeline, but benefits from strong congressional support and job creation across the United States. NASA is increasingly relying on the private sector for development and implementation. The goal is to land humans on the Moon by 2028 and establish a lunar base by 2030, though these timelines remain subject to change.

Quote: “It provides central banks with the space to take difficult decisions that benefit the economy, benefit the citizens of that country over the medium term. And, you know, the historical record is very clear. Central banks with operational independence from monetary policy do a better job of delivering price stability for their citizens.” – Tiff Macklem, on the importance of Federal Reserve independence.

Federal Reserve Outlook & Economic Concerns

The Federal Reserve is widely expected to hold interest rates steady in its upcoming announcement. TD Securities’ Goldberg anticipates the Fed will avoid making significant changes and focus on providing guidance regarding future policy decisions. Key areas of focus will include any potential dissents within the committee, updates on reserve management purchases, and signals regarding the conditions that would trigger future rate cuts. The Fed is cautiously optimistic about inflation, currently around 3%, and will be closely monitoring labour market conditions and economic data. There is concern about potential political pressure on the Fed from the White House, which could threaten its independence and impact financial markets, particularly in Canada, which is heavily influenced by U.S. financial markets. Goldberg noted that the Fed is navigating a complex economic landscape and will likely proceed cautiously.

Northwood & Space Infrastructure

Northwood, a company specializing in ground infrastructure for the space industry, recently closed a $100 million US Series B funding round led by Washington Harbour Partners. CEO and Co-founder Bridgit Mendler highlighted the increasing demand for their services, driven by both commercial and government space initiatives. Northwood offers an end-to-end solution, encompassing hardware, sites, logistics, and software, addressing the friction points in launching space missions. They recently secured a $49 million contract with the U.S. Space Force, demonstrating their ability to deliver solutions quickly. Mendler emphasized the importance of a secure and reliable ground infrastructure to support the growth of the space industry. The company is currently deploying sites across two continents and plans to expand to five continents this year. Northwood differentiates itself by providing a comprehensive solution, rather than focusing solely on hardware.

Conclusion

Today’s market activity was largely characterized by anticipation of the Federal Reserve’s announcement. The Bank of Canada maintained its current interest rate, while several corporate developments, including Hydro One’s transmission line project, Agnico Eagle’s asset sale, and Seagate’s strong performance, provided specific points of interest. NASA’s Artemis program continues to progress, and Northwood’s funding highlights the growing importance of ground infrastructure in the expanding space industry. The overall economic outlook remains uncertain, with the Fed closely monitoring inflation, labour market conditions, and geopolitical risks.