Firm commodity prices and weaker-than-expected U.S. consumer inflation print drove Canadian stocks higher for the third consecutive session on Friday as investors interpreted the data as a sign of easing inflationary pressures. The S&P/TSX Composite Index climbed by 167 points, or 0.6%, to settle at 30,353 — extending its weekly gains to 0.8%.
Despite weakness in healthcare and consumer staple sectors, solid gains in technology, financials, and energy stocks helped propel the index higher.
Notably, the Consumer Price Index (CPI) in the U.S. rose 0.3% in September, slightly below the 0.4% gain recorded in August. The moderation in price growth strengthened hopes that inflationary pressures are gradually cooling, fueling optimism that the U.S. Federal Reserve could consider more rate cuts in upcoming meetings.
Top TSX Composite movers and active stocks
Shares of Aecon Group (TSX:ARE) jumped over 12% to $28.49 apiece, making it the top-performing stock for the day. This rally in ARE stock came after the Canadian construction and infrastructure development firm announced that its joint venture, Cascade Nuclear Partners, was selected to deliver a major small modular reactor (SMR) project in Washington State.
Aecon’s venture will oversee the design and construction of the first four Xe-100 reactors for Energy Northwest, marking one of the first SMR builds in the United States. Investors cheered the move as a significant milestone for Aecon’s nuclear strategy, expanding its footprint in the growing U.S. clean energy sector. After the recent rally, ARE stock has risen nearly 20% so far in October.
Celestica, NexGen Energy, and Shopify were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 3.7%.
In contrast, G Mining Ventures, Bausch Health, International Petroleum, and Lundin Gold slipped by at least 2.3% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Barrick Mining, Cenovus Energy, Enbridge, Whitecap Resources, and Manulife Financial were the five most active stocks on the exchange.
TSX today
Crude oil and base metals prices were largely bullish in early trading on Monday after the U.S. and China outlined a trade-deal framework, easing fears of tariff escalations between the world’s two largest economies. However, gold and silver prices were hovering close to their lowest level in around two weeks. Given these mixed signals from the commodity markets, the TSX could see a more uneven start to the week today, with expected strength in the energy sector, potentially offset by softness in the shares of precious metals miners.
While no major domestic economic releases are due, Canadian investors will keep an eye on the latest new home sales data from the U.S. this morning. In addition, more developments related to the ongoing U.S.-China trade talks could influence sentiment.
On the corporate events front, Celestica and TMX Group will announce their latest quarterly results today, with the third-quarter earnings season set to heat up over the coming days.
Market movers on the TSX today
