The S&P/TSX Composite Index advanced roughly 1.5% to approach the 36,000 level after the Democrats regained control of both chambers of the U.S. Congress, boosting expectations of easing trade tensions between Canada and the United States. A Democratic majority is seen as potentially curbing some of President Trump’s trade policy initiatives.
The trade dispute dates back to February 2025, when Trump imposed broad tariffs on Canadian goods, triggering retaliatory measures from Ottawa. Although goods compliant with the USMCA were later granted exemptions, additional tariffs remained in place on steel, aluminum, and automotive imports.
Among individual names, BRP rose about 5%, while Magna International gained nearly 3%. Lower oil prices provided some support to credit-sensitive stocks, with Royal Bank of Canada and Toronto-Dominion Bank each adding around 2%. A rally in gold prices also buoyed the materials sector: Agnico Eagle surged 7%, Barrick gained more than 5.5%, and Wheaton Precious Metals climbed 6%.
