FX.co ★ TSX Rises Nearly 1%, Ends At 2-week High

On Wednesday, Canadian stocks reversed their early struggles to push the benchmark S&P/TSX Composite Index to a nearly two-week high, buoyed by a more optimistic market outlook amid diminishing concerns about U.S. inflation.

The S&P/TSX Composite Index advanced by 208.08 points, or 0.9%, to close at 23,211.17.

Significant gains in consumer discretionary and technology stocks largely propelled this rally. Additionally, numerous stocks in the industrials, healthcare, financials, and utilities sectors also ended the day on a positive note.

The Consumer Discretionary Capped Index surged by 3.67%. Notably, Dollarama Inc. (DOL.TO) saw a robust increase of 8.2% after reporting a rise in net earnings for the second quarter to $285.94 million, or $1.02 per share, up from $245.76 million, or $0.86 per share, in the same quarter the previous year.

Other notable performers included Brp Inc. (DOO.TO) and Restaurant Brands International (QSR.TO), which gained 4.6% and 3.25%, respectively. Mty Food Group (MTY.TO) added 2.2%, while Gildan Activewear (GIL.TO), Canadian Tire Corp. (CTC.A.TO), Linamar Corp. (LNR.TO), Magna International (MG.TO), Canada Goose Holdings (GOOS.TO), and Aritzia Inc. (ATZ.TO) advanced by 1.2% to 1.7%.

The Information Technology Capped Index also saw gains, rising by 1.59%. Shopify Inc. (SHOP.TO) climbed 4.65%, and Celestica Inc. (CLS.TO) closed nearly 4% higher. Other tech stocks, including Quarterhill (QTRH.TO), Computer Modelling (CMG.TO), Lightspeed Commerce (LSPD.TO), Converge Technology Solutions (CTS.TO), BlackBerry (BB.TO), and Sylogist (SYZ.TO), posted increases ranging from 1% to 3.2%.

Among other major gainers, First Majestic Silver Corp. (AG.TO) and First Quantum Minerals (FM.TO) surged by 7.5% and 6.6%, respectively. Cameco Corporation (CCO.TO) increased by 5.8%. Additionally, TFI International (TFII.TO), National Bank of Canada (NA.TO), TerraVest Industries (TVK.TO), and Canadian Pacific Kansas City (CP.TO) saw gains between 2% and 2.6%. Cargojet (CJT.TO) ended the day up nearly 2%.

Data from the U.S. Labor Department showed that the consumer price index rose by 0.2% in August, consistent with the increase observed in July and in line with economists' expectations.

However, core consumer prices, which exclude food and energy, increased by 0.3% in August after a 0.2% rise in July. This was higher than the economists' forecast of another 0.2% rise.

Despite these data points, the Federal Reserve is still anticipated to lower interest rates next week. However, the larger-than-expected increase in core consumer prices diminishes the likelihood of the central bank opting for a 50 basis point rate cut.

Following the release of this report, CME Group's FedWatch Tool indicated an 83% probability of a quarter-point rate cut and only a 17% chance of a half-point cut.