Canada’s main stock index climbed on Friday, supported by broad-based gains as stronger domestic GDP data and in-line U.S. inflation figures lifted investor confidence.
The S&P/TSX Composite Index rose 0.3% to 29,817.85 by 9:55 a.m. ET, putting it on track for an eighth straight week of gains — its longest winning streak in over a year.
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Economic data added fuel to the rally. Canada’s economy returned to growth in July, expanding by 0.2%, driven by strength in mining, manufacturing, and wholesale trade.
“With a 0.2% print, we’re clearly in a slow-growth environment, which has implications for interest rates,” said Robert Gill, portfolio manager at Fairbank Investment Management.
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Despite the overall uptrend, some investors appeared to be locking in profits after a strong multi-week rally. “The market has been hot, especially in certain sectors like tech, and we’re now seeing some rotation out of those overextended areas,” Gill added.
Sector Highlights
- Technology stocks led the day’s losses, with e-commerce giant Shopify slipping 1%
- Consumer non-cyclicals and gold miners were among the top performing sectors
- Perpetua Resources surged 17.3% after announcing it was in partnership talks with Glencore, Trafigura, Clarios, and Sunshine Silver to refine antimony in the U.S.
- NFI Group dropped 12% following a third-quarter update and confirmation it is actively bidding on several projects
U.S. and Global Trade Developments
Investor sentiment was also supported by the U.S. Personal Consumption Expenditures (PCE) index, which came in line with expectations, increasing the odds that the Federal Reserve could cut rates further this year.
However, trade tensions resurfaced as U.S. President Donald Trump announced a new wave of tariffs targeting branded pharmaceuticals, heavy-duty trucks, and furniture, set to take effect next week.
In global trade developments, Canadian Prime Minister Mark Carney met with UK Prime Minister Keir Starmer to discuss strengthening bilateral trade ties.
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