Despite weaker metals prices, persistent geopolitical tensions, and continued Canada-U.S. trade conflict, Canadian equities trended higher for the third straight session on Tuesday as prospects of more rate cuts and renewed buying in the tech sector strengthened investor confidence. The S&P/TSX Composite Index climbed by 319 points, or 0.9%, to settle at 35,984 — extending the benchmark’s three-day gains to 2.7%.
While tech, financial, and energy shares trended higher, weakness in many other main market sectors like mining and healthcare limited the TSX index’s gains but failed to derail its ongoing recovery.
Top TSX Composite movers and active stocks
Enerflex (TSX: EFX) was the top-performing TSX stock for the day, as its shares jumped more than 14% to $39.11 apiece. This rally in EFX stock came after the Calgary-based energy infrastructure and energy transition company announced a major new contract to supply natural gas-fired power generation equipment for a large North American data centre development.
Under the agreement, Enerflex will design, engineer, manufacture, and assemble power generation units with a combined capacity of more than one gigawatt. Including this contract and other recent project awards, its backlog of power generation projects that operate independently of the electricity grid now exceeds 1.75 gigawatts, with deliveries extending through 2028. The sizeable new contract and growing demand for reliable power to support artificial intelligence (AI) and data centres fueled strong buying in EFX stock.
TerraVest Industries, CES Energy Solutions, and Open Text were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 4.9%.
However, Wesdome Gold Mines, Hammond Power Solutions, Americas Gold and Silver, and Labrador Iron Ore Royalty dived by at least 7.5% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, TD Bank, Enbridge, Telus, and BCE were the five most active stocks on the exchange.
TSX today
Crude oil and copper prices remained firm in early Wednesday trading, while gold and silver prices fell sharply. Given these mixed commodity signals, the resource-heavy TSX index could see a mixed opening today, with potential gains in energy and copper mining stocks offset by weakness in precious metals shares.
Meanwhile, investors will closely monitor the latest U.S. consumer inflation report, with headline inflation expected to rise 3.6% year-over-year in September. The data could influence expectations for the U.S. Federal Reserve’s next interest rate decision and affect broader market sentiment.
On the geopolitical front, fresh Houthi missile attacks on Saudi Arabia and reported strikes on commercial vessels in the Strait of Hormuz have kept global energy supply concerns elevated. Canadian investors will also keep an eye on ongoing Canada-U.S. trade tensions, especially after reports that Ottawa paused a planned purchase of 16 U.S.-made Black Hawk helicopters amid the dispute.
Market movers on the TSX today
