FX.co ★ TSX Rises 1.4% On All-round Buying

The Canadian market concluded Wednesday with remarkable strength, primarily due to persistent buying in energy and materials sectors. Investor sentiment was buoyed by the anticipation of an interest rate cut by the Federal Reserve.

Sectors such as industrials, utilities, consumer discretionary, consumer staples, healthcare, and financials also saw notable gains during the session.

The benchmark S&P/TSX Composite Index rose by 307.73 points, or 1.4%, closing at 22,350.23, just shy of the day's peak at 22,354.11.

The Materials Capped Index increased by 2.39%, while the Industrials Capped Index surged nearly 2%. The Utilities Capped Index went up by 1.65%. Meanwhile, indexes for energy, consumer discretionary, consumer staples, and healthcare sectors recorded gains of between 1% and 1.3%.

Cameco Corporation (CCO.TO) saw a near 10% rise. Bombardier Inc (BBD.B.TO) climbed by 7.5%. Methanex Corporation (MX.TO) rose about 5.2%, and Agnico Eagle Mines (AEM.TO) advanced by 4.25%.

Wheaton Precious Metals (WPM.TO), Celestica Inc (CLS.TO), BRP Inc (DOO.TO), Canadian Pacific Kansas City (CP.TO), TFI International (TFII.TO), and Precision Drilling Corporation (PD.TO) each gained between 3% and 4%.

Canadian National Railway (CNR.TO), Colliers International (CIGI.TO), Franco-Nevada Corporation (FNV.TO), Kinaxis Inc (KXS.TO), goeasy (GSY.TO), Intact Financial Corporation (IFC.TO), Constellation Software (CSU.TO), and George Weston (WN.TO) also posted substantial gains.

On the downside, Hut 8 Corp (HUT.TO) ended the day over 5% lower, Lightspeed Commerce (LSPD.TO) closed down by 2.7%, and Rogers Communications (RCI.A.TO) dipped by 1.7%.

During congressional testimony, Federal Reserve Chair Jerome Powell indicated that more favorable data would enhance the Fed's confidence in a sustainable move toward its 2% inflation target, potentially leading to an interest rate cut.

Powell also cautioned that maintaining high interest rates for too long could endanger economic growth.

"Given the progress in reducing inflation and cooling the labor market over the past two years, elevated inflation is not the only risk we face," he stated. "Delaying or insufficient policy easing could excessively weaken economic activity and employment."