The Canadian stock market continued to inch up for the seventh consecutive day after U.S. president Donald Trump’s remarks about his administration’s aggressive economic agenda boosted investor sentiment. The S&P/TSX Composite Index climbed by 123 points, or 0.5%, on Thursday to settle at 25,434 — its highest closing level in six weeks.
Despite intraday weakness in commodity prices, all key sectors ended the session in the green, with consumer and industrial stocks leading the TSX rally.
The Trump factor
Notably, Trump’s address at the World Economic Forum yesterday signalled a focus on deregulation, tax cuts, and rapid approvals for energy projects. His remarks that “with oil prices going down, I’ll demand that interest rates drop immediately” raised market hopes for the Federal Reserve’s interest rate decision scheduled for next week.
In an important statement about the corporate world, Trump said that his administration could reduce the corporate tax rate from 21% to 15% if the companies make their product in the United States. Investors expect these policies, alongside plans for big investments in artificial intelligence and manufacturing, to boost economic activity and strengthen trade, which was one of the key factors driving the Toronto Stock Exchange higher on Thursday.
Top TSX Composite movers and active stocks
Badger Infrastructure, Aecon Group (TSX:ARE), Birchcliff Energy, and Canadian Tire were the top-performing TSX stocks for the day, with each climbing by at least 4.4%.
The recent rally in Aecon stock came after the Toronto-based construction and infrastructure firm, in a joint venture with AtkinsRéalis, secured a $1.1 billion contract with Ontario Power Generation for the early works phase of refurbishing four units at the Pickering Nuclear Generating Station.
Aecon’s 50% share of the contract was added to its backlog, with an additional $1 billion to be included in the first quarter of 2025. The project involves engineering, procurement, and planning activities, with completion of this phase expected by 2026. A 7.3% jump in Aecon stock yesterday extended its week-to-date gains to 10.6% as it offers a 3% annualized dividend yield.
In contrast, NGEx Minerals, StorageVault, Athabasca Oil, and B2Gold slipped by at least 3.5% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, B2Gold, Royal Bank of Canada, Enbridge, Birchcliff Energy, and Calibre Mining stood out as the five most active stocks on the exchange.
TSX today
Metal prices across the board were bullish in early morning trading on Friday, which could lift TSX mining stocks at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the S&P global manufacturing and services and U.S. existing home sales data this morning.
With 1.5% week-to-date gains, the TSX Composite Index seems on track to end a second consecutive week in green territory as investors continue to respond positively to improving global sentiment and policy-driven optimism.
Market movers on the TSX today
