TORONTO -- Canada's main stock index snapped a four-day losing streak as financials rose on higher bond yields and increasing crude oil prices lifted the energy sector.

Bond yields rose again on anticipation that the reappointment of Jerome Powell as U.S. Federal Reserve chairman will result in interest rates rising next year, perhaps earlier than expected.

The 10-year U.S. yield increased to 1.679 per cent while the Canadian yield was 1.809 per cent.

"In Canada, we're tightening and we have been for quite some time, so I don't think it's quite as much of a surprise here as it is in the States (where) they seem to think that stimulus is going to last forever," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Some observers believe the Fed will accelerate interest rate increases.

"But I'm not convinced the U.S. is going to move up their timetable unless inflation really gets out of hand, which is why I think they've been going around trying to talk down the oil price," he said in an interview.

Core inflation numbers that the Fed looks to will be released on Wednesday. Economists expect October's reading will be 4.1 per cent.

The S&P/TSX composite index closed up 33 points to 21,453.77.

In New York, the Dow Jones industrial average was up 194.55 points at 35,813.80. The S&P 500 index was up 7.76 points at 4,690.70, while the Nasdaq composite was down 79.62 points at 15,775.14.

Energy was the leading sector on the TSX, gaining 3.8 per cent as crude oil prices rose 2.3 per cent after being weaker for about a week. Shares of several Canadian producers increased with Enerplus Corp. up 7.8 per cent, Crescent Point Energy Corp. up 6.6 per cent and Cenovus Energy Inc. 6.2 per cent higher.

The January crude oil contract was up US$1.75 at US$78.50 per barrel and the January natural gas contract was up 17.4 cents at US$5.04 per mmBTU.

Crude prices rose even though the U.S. and several other producers announced tapping into their strategic petroleum reserves. That's meant to lower gasoline prices and tame inflation, but crude prices rose because the actions didn't meet expectations, Cieszynski said.

"I think what probably happened is that we're in this buy-on-rumor, sell-on-news kind of situation where people have been talking pretty seriously about opening the stockpiles for like a week now. And the price of oil has come down."

The Canadian dollar traded for 78.70 cents US compared with 78.86 cents US on Monday.

The heavyweight financials sectors was also up on the day as Toronto-Dominion Bank and Bank of Nova Scotia shares were up 2.4 and 1.3 per cent respectively on higher bond yields and the prospect of interest rate increases.

"If rates go up again they can actually start making money from lending," he said, adding that rates rise because the economy is robust, which will result in banks decreasing their loan loss provisions.

The situation should reinforce Canadian banks announcing dividend increases in their upcoming quarterly results.

Technology was the big laggard, following the lead of the U.S. sector. It lost 1.6 per cent due to rising bond yields with Lightspeed Commerce Inc. down 7.9 per cent and Shopify Inc. off 1.7 per cent.

Technology stocks typically do worse in higher-rate environments because future profits are less attractive to investors.

Best Buy shares plunged 12.3 per cent as concerns about tighter sales margins outweighed solid earnings. Zoom Video Communications Inc. shares were also hit in a sign that companies which profited from the stay-at-home economy were taking hits as the situation goes back to normal, said Cieszynski.

Materials also moved lower, dropping 1.1 per cent on a drop in gold prices. Centerra Gold Inc. fell 5.5 per cent while Fortuna Silver Mines Inc. was down 4.9 per cent.

The December gold contract was down US$22.50 at US$1,783.80 an ounce and the December copper contract was up 2.7 cents at US$4.42 a pound.

This report by The Canadian Press was first published Nov. 23, 2021.