On Wednesday, the S&P/TSX Composite Index increased by approximately 0.4%, surpassing the 31,000 mark for the first time. This achievement extended the previous day's record-setting rally and was bolstered by rising expectations—now exceeding 80%—of a Federal Reserve rate cut in December, following weaker US economic data and dovish comments from the Fed. Adding to these expectations, reports surfaced that Kevin Hassett, Director of the White House National Economic Council, is the leading candidate for Fed Chair. His perceived alignment with the administration's preference for lower interest rates strengthened the outlook for a more accommodative US monetary policy, thereby supporting investor risk appetite.
On the domestic front, the Canadian federal government announced an investment of approximately C$280 billion in infrastructure and productivity programs over the next five years, supporting the demand for Canadian capital. In addition, gold prices increased due to the increased likelihood of rate cuts, providing a boost to the resource-heavy TSX. The index, which has shattered multiple records this year, has risen nearly 25% fueled by a combination of the safe-haven appeal of gold and AI-driven gains from major US technology companies. Notable performers included Barrick, with a rise of 1.9%, Agnico Eagle at 1.3%, and Brookfield at 1%.
