On Thursday, Canadian markets surged to a record high, bolstered by advances in the energy and materials sectors. Investor sentiment remained upbeat amid ongoing hopes for the Federal Reserve's interest rate cuts. However, the likelihood of a 50-basis point cut diminished following an unexpected rise in U.S. consumer price inflation data for September.
The S&P/TSX Composite Index, which initially fell to 24,134.87 after a 50-point opening deficit at 24,176.40, reached a new pinnacle at 24,315.49 before closing at 24,302.26. This represents a gain of 77.36 points or 0.32%.
The Energy Capped Index increased by 2.22%, with Canadian Natural Resources, MEG Energy Corp, Suncor Energy, Whitecap Resources, Tourmaline Oil Corp, Parex Resources, International Petroleum Corp, Imperial Oil, and Arc Resources experiencing gains of 2 to 3%.
Similarly, the Materials Capped Index rose by 2.14%. Notably, K92 Mining Inc surged nearly 17%, while Orla Mining, Torex Gold Resources, Calibre Mining, and Iamgold advanced by 7 to 9.4%. Pan American Silver Corp, First Majestic Silver Corp, Aya Gold & Silver, SSR Mining, Kinross Gold, and MAG Silver Corp were also significant gainers in the materials sector.
The Labor Department reported a 0.2% increase in the consumer price index for September, consistent with August's figures, though economists anticipated a 0.1% rise. Core consumer prices, excluding food and energy, rose by 0.3% for the second successive month, surpassing the expected 0.2% increase.
Additionally, the annual consumer price growth rate eased to 2.4% in September from 2.5% in August, contrary to economists' expectations of a slowdown to 2.3%. Conversely, the annual core consumer price growth rate climbed to 3.3% in September from 3.2% in August, contrary to forecasts of an unchanged pace.
