Canadian stocks rallied sharply on Wednesday after the U.S. Federal Reserve held the key policy interest rates steady but pointed to a possible reduction in the September meeting if inflation continues easing. Hopes of rate cuts in the near term, along with a strong rally in commodity prices across the board, drove the S&P/TSX Composite Index up by 286 points, or 1.3%, yesterday to 23,111.
As a result, the TSX benchmark not only made a fresh record intraday high of 23,210 but also closed above the 23,000 level for the first time in history. While nearly all key sectors, except real estate, posted strong advances, the market rally was mainly driven by solid gains in technology, mining, and energy stocks.
In his press release, the Fed’s chair, Jerome Powell, noted that “If we were to see, for example, inflation moving down quickly or more or less in line with expectations, growth remains, let’s say, reasonably strong, and the labor market remains consistent with its current condition, then I would think that a rate cut could be on the table at the September meeting.”
Top TSX Composite movers and active stocks
Shares of New Gold (TSX: NGD) popped by 13.1% to $3.19 per share, making it the top-performing TSX stock for the day. This strong rally in NGD stock came after the Toronto-based gold miner announced its quarterly production and financial results.
In the second quarter of 2024, New Gold’s total revenue rose 18.3% year over year to US$218.2 million as it generated $100 million in cash flow from operations and $20 million in free cash flow. In addition, increased metal prices and copper sales volumes drove the company’s adjusted quarterly net profit up by 46.6% from a year ago to US$17 million. On a year-to-date basis, NGD stock now trades with solid 66% gains.
Celestica, Precision Drilling, Denison Mines, and Hudbay Minerals were also among the session’s biggest gainers on the Toronto Stock Exchange, each climbing by more than 6%.
In contrast, Allied Properties REIT, OceanaGold, Spin Master, and Killam Apartment REIT slid by at least 2.5% each, making them the day’s worst-performing TSX stocks.
According to the exchange’s daily trade volume data, Enbridge, NexGen Energy, Bank of Montreal, Denison Mines, and Manulife Financial were the five most active stocks.
TSX today
Most commodity prices were mixed early Thursday morning, pointing to a flat opening for the resource-heavy TSX index today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the weekly jobless claims and monthly manufacturing data from the United States this morning. Overall, more corporate results could keep the market volatile as investors also continue to assess the Fed’s latest statement.
As the second-quarter earnings season heats up, many TSX-listed companies, including Badger Infrastructure, Open Text, Trisura, Fairfax Financial, Dundee Precious Metals, Ero Copper, Capstone Copper, Sandstorm Gold, Definity Financial, Centerra Gold, TransAlta, Bausch Health, Gildan Activewear, Lightspeed Commerce, Thomson Reuters, BCE, Canada Goose, TC Energy, Brookfield Infrastructure Partners, Canadian Natural Resources, Cenovus Energy, AltaGas, Tamarack Valley Energy, First Majestic Silver, and Colliers International, are likely to announce their latest quarterly results on August 1.
Market movers on the TSX today
