Even as the Bank of Canada (BoC) kept interest rates steady in line with market expectations, Canadian stocks rallied sharply on Wednesday after the U.S. Federal Reserve cut the federal funds rate by 25 basis points and signaled that more reductions could follow in early 2026. The S&P/TSX Composite Index rallied by 246 points, or 0.8%, to close at a new all-time high of 31,491 — extending its year-to-date gains to 27.3%.
On the one hand, shares of consumer staple and utility companies witnessed weakness as investors rotated out of defensive stocks in favor of growth-oriented market sectors. On the other hand, technology, mining, and financial stocks saw strong buying interest, reflecting renewed optimism around lower borrowing costs ahead.
Canada holds rates while the U.S. Fed moves to cut
The U.S. Fed’s latest rate decision reflected a shift in its risk assessment, with chair Jerome Powell citing elevated downside risks to employment and persistent inflation uncertainty.
Meanwhile, the BoC held its overnight rate steady at 2.25%, noting that recent GDP (gross domestic product) strength was largely trade-driven and that domestic demand remained weak. While the BoC expects growth to pick up in 2026, it highlighted that underlying inflation is still around 2.5%, keeping its policy stance cautious for now.
Together, the central bank actions offer investors a mixed but stabilizing backdrop heading into 2026.
Top TSX Composite movers and active stocks
Shopify (TSX:SHOP) climbed by 4.8% to $232.49 per share, making it one of the top-performing TSX stocks for the day. In addition to the broader market optimism after the U.S. Federal Reserve’s rate cut decision, SHOP stock rallied as it unveiled its Winter ’26 Edition, packed with more than 150 new artificial intelligence (AI)-powered features.
One of the key highlights was the launch of Shopify Agentic Storefronts, which lets merchants have their products discovered and purchased directly inside AI conversations on platforms like ChatGPT and Microsoft Copilot. Shopify also rolled out major upgrades to its Sidekick assistant, and new inventory and checkout tools. Investors welcomed Shopify’s sweeping AI-driven product expansion, seeing it as a catalyst for long-term growth. On a year-to-date basis, SHOP stock is now up 52%.
Lightspeed Commerce, G Mining Ventures, and Ivanhoe Mines were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 4.7%.
In contrast, Bombardier, Capital Power, North West Company, and Energy Fuels slipped by at least 3.8% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Telus, Suncor Energy, Barrick Mining, and B2Gold were the five most active stocks on the exchange.
TSX today
After trending higher in the previous session, crude oil and gold prices pulled back slightly in early Thursday trading, suggesting a potentially subdued opening for the TSX today.
While no major domestic economic releases are due this morning, Canadian investors may take a breather after Wednesday’s rally, while continuing to digest central bank signals and assess the path of monetary policy into 2026.
On the corporate events side, TSX-listed Dollarama and Empire Company will release their latest quarterly earnings reports today, which could keep their shares in focus throughout the session.
Market movers on the TSX today
