On Thursday, gains by technology and railroad firms propelled Canada’s TSX to its highest level in over two years. Investors hailed corporate profits and anticipated reduced interest rates.
The S&P/TSX composite index of the Toronto Stock Exchange closed at 21,794.56, its highest closing level since April 2022. It recorded a gain of 200.60 points, or 0.9%.
Federal Reserve Chair Jerome Powell stated that the US central bank is “not far” from having the confidence in declining inflation necessary to start lowering interest rates. Concurrently, Wall Street’s major indices also increased.
“Interest rates, even though they are not coming down yet, central bankers are telegraphing to expect a rate cut probably later this year,” said Lorne Steinberg, president of Lorne Steinberg Wealth Management.
“That’s bullish for the economy, so the rail stocks are doing well.”
Shares of Canadian National Rail Co. increased by 1.2%. Concurrently, shares of Canadian Pacific Kansas City Ltd. rose by 2.2%.
Technology added 2.5 percent, and those actions helped the industrial sector rise by 0.9%.
After beating the fourth-quarter revenue forecast, Descartes Systems Group Inc experienced a 4.6% increase in shares. Simultaneously, Constellation Software Inc witnessed a 4.5% increase in shares.
The performance of auto-parts producer Linamar Corp was likewise well received by investors. The stock finished 11.4% higher.
Continuing its historic surge, gold drove a 1.2% increase in the materials sector, which includes miners of base and precious metals as well as fertilizer companies.
Only consumer staples and oil saw declines, leaving eight of the TSX’s ten primary sectors ahead at the close. A barrel of oil ended up 0.25% less at $78.93.
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