TSX Scales New Record High As Strong GDP Data, Fed Rate Hopes Lift Sentiment

(RTTNews) - Canadian stock market's benchmark S&P/TSX Composite Index climbed to a new record high Friday morning, riding on strong gains in materials and energy sectors thanks to firm commodity prices. Data showing stronger than expected GDP growth in the third quarter is also aiding sentiment.

Although stocks from the rest of the sectors are turning in a mixed performance with several counters seeing lackluster activity, the undertone remains positive thanks to rising optimism about an interest rate cut by the Federal Reserve in December.

The S&P/TSX Composite Index was up 155.13 points or 0.5% at 31,351.84 a few minutes before noon. The index touched a new high of 31,359.47.

The Canadian GDP rose by 0.6% on quarter in the third quarter of 2025, following a revised 0.5% contraction in the previous period, data from Statistics Canada showed. On an annualized basis, the Canadian GDP grew by 2.6%, rebounding sharply from a revised 1.8% decline in Q2 and well above expectations of a 0.5% rise.

The Canadian GDP contracted by 0.3% from the previous month in October of 2025, according to a flash estimate.

Canada's government posted a budget deficit of CAD 5.0 billion in September 2025, compared with a deficit of CAD 3.2 billion in September 2024, according to a report from the Department of Finance.

The Materials Capped Index climbed 2%. Endeavour Silver Corp, Discovery Silver Corp, First Majestic Silver Corp and Aya Gold & Silver surged 12 to 14%.

Pan American Silver Corp., New Gold, Ero Copper, Skeena Resources, Novagold, G Mining Ventures, Seabridge Gold, First Quantum Minerals and Kinross Gold Corp were among the other prominent gainers.

The Energy Capped Index moved up 1.1%. Vermilion Energy surged 6%, Kelt Exploration, Birchcliff Energy, Ces Energy Solutions, Tourmaline Oil Corp. and Athabasca Oil Corp gained 2.5 to 4%.

Canadian National Railway, Enerflex, Premium Brands, Celestica, Spin Master Corp., and Cogeco Cable were the other impressive gainers.

Extendicare, Computer Modelling, Gildan Activewear, Mattr Corp., Bombardier and Power of Canada were some of the laggards this morning.