The Globe and Mail reports in its Wednesday edition that Canada's main stock index closed higher on Tuesday, powered by energy and financial shares, as investors digested news that inflation inched higher in January. A Reuters dispatch to The Globe says that south of the border, the S&P 500 squeaked past its previous record closing high at the top of a holiday-shortened week, with earnings season winding down, U.S. Federal Reserve minutes on tap, and geopolitical uncertainties churning in the background. The S&P/TSX Composite Index closed up 165.61 points at 25,648.84. The energy sector rose 1.4 per cent with oil prices as traders assessed the fallout from drone attacks on a key conduit for Kazakhstan's oil exports. Traders were still cautious as talks to end the war in Ukraine could boost Russian supplies. Bay Street analysts expected big banks to post strong first-quarter results next week, but noted an uncertain outlook for the rest of 2025 owing to risk of a tariff war with the U.S. Stephen Brown at Capital Economics said, "Given the tariff threat hanging over the economy, we still think the odds slightly favour another cut from the Bank of Canada next month, but it is shaping up to be a close call."