Canadian stocks went sideways on Wednesday even as the Bank of Canada (BoC) and the U.S. Federal Reserve both delivered widely expected 25-basis-point rate cuts. Despite rising as much as 150 points in intraday trading, the S&P/TSX Composite Index ended the volatile session with a modest gain of just six points at 29,322.
Despite strong gains in the shares of healthcare and consumer discretionary companies, weakness in many other key sectors, such as real estate, technology, and industrials, offset much of the advance.
In its latest policy statement, the BoC noted that a weaker economy, softening labour market, and easing inflation risks justified its rate cut decision, while leaving the door open for further reductions if trade disruptions continue to weigh on growth. For TSX investors, this cautious but accommodative stance could provide support to rate-sensitive sectors like real estate and financials in the months ahead.
Meanwhile, the Fed highlighted moderating growth and rising downside risks to employment as it trimmed its policy rate by 25 basis points. The U.S. central bank’s signal that future moves will be highly data-dependent could mean more volatility for global markets in the near term.
Top TSX Composite movers and active stocks
Energy Fuels, Endeavour Silver, Headwater Exploration, and Tamarack Valley Energy were the top-performing TSX stocks for the day, with each climbing by at least 3.4%.
Shares of Ivanhoe Mines (TSX:IVN) were also among the top gainers on the Toronto Stock Exchange as they advanced by 3% to $13.59 apiece. The rally came after the miner announced a US$500 million strategic private placement with the Qatar Investment Authority, which will take about a 4% stake in the company.
Ivanhoe said the proceeds will go toward the exploration and development of its critical minerals portfolio, including projects in Africa and beyond. While the deal still requires customary approvals, the management highlighted that it strengthens Ivanhoe’s financial position while setting up new strategic partnerships for future growth. Despite the recent gains, however, IVN stock is still down 20% on a year-to-date basis.
On the flip side, First Majestic Silver, goeasy, Lundin Mining, and Celestica slid by at least 2.6% each, making them the day’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Telus, Ivanhoe Mines, Barrick Mining, and Cenovus Energy were the five most active stocks on the exchange.
TSX today
Commodity prices across the board fell in early morning Thursday trading, with crude oil and precious metals retreating from recent highs. This weakness could weigh on the resource-heavy TSX at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest U.S. manufacturing data and jobless claims this morning. Overall, TSX investors may continue to digest the twin central bank decisions and their implications for growth, inflation, and corporate earnings.
Market movers on the TSX today
