18.09.202520:02:28UTC+00TSX Renews Record High

On Thursday, the S&P/TSX Composite Index experienced a 0.4% increase, reaching a new peak of 29,453, primarily driven by advances in technology and financial sectors. These gains effectively counterbalanced the downturn in energy and mining stocks, spurred by a series of central bank rate cuts. Both the Bank of Canada and the US Federal Reserve reduced their policy rates by 25 basis points and hinted at the potential for further cuts. This move reduced discount rates, enhancing valuations for sectors sensitive to duration and growth. Recent Canadian economic indicators, highlighting a slowdown in the labor market and overall growth, have amplified expectations for additional rate cuts, leading investors to reassess future rate paths. Companies sensitive to interest rates, such as Shopify and Brookfield, emerged as top gainers with increases of 3% and 2.2%, respectively. Meanwhile, declines in oil, gold, and copper prices limited the index's overall advance by exerting pressure on commodity producers.