TSX Rises on Tech and Materials Sectors

October 30, 2025 – Canada’s main stock index, the S&P/TSX Composite Index, inched upward on Thursday, buoyed by gains in the technology and materials sectors, as investors digested the tempered outlook for interest rate cuts in both Canada and the United States. The positive sentiment was further supported by the newly announced U.S.-China trade agreement.

At 10:11 a.m. ET (1411 GMT), the TSX was trading up 0.3% at 30,223.34 points, signaling cautious optimism among market participants.

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Rate Cut Outlook Tempered in Canada and the U.S.

Investor expectations for interest rate reductions have moderated after signals from the Bank of Canada and the Federal Reserve. Following a quarter-point rate reduction and lowered economic growth forecasts on Wednesday, the Canadian central bank indicated a potential pause in further cuts. Current trading reflects a 90% probability of a hold at the next Bank of Canada meeting.

“We need to take a bigger picture view. The absence of rate cuts potentially signals some positives as well—namely, that we’re likely experiencing a more stable economic environment,” said Josh Sheluk, portfolio manager at Verecan Capital Management.

Meanwhile, on Wall Street, indexes trended downward following mixed earnings reports from major technology companies and comments from Federal Reserve Chair Jerome Powell, which cast doubt on further rate reductions in the U.S. this year.

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Sector Performances on the TSX

• Technology: The TSX information technology sector (.SPTTTK) led gains with a 0.8% rise, reflecting investor confidence in Canadian tech companies.
• Materials: The materials sector (.GSPTTMT) gained 0.9%, supported by a 2% jump in gold prices, driven by U.S. dollar weakness following the Fed’s rate decision.
• Healthcare: The healthcare sector (.GSPTTHC) emerged as the top performer, rising 2.9%, with Bausch Health (BHC.TO) surging 14.6% after raising its full-year 2025 revenue outlook.
• Financials: Heavyweight financials (.SPTTFS) traded positively, adding 0.2%, reflecting steady performance in Canada’s banking and insurance sectors.
• Energy: Conversely, the energy sector (.SPTTEN) declined 0.7%, as falling oil prices weighed on investors evaluating the implications of the trade agreement between major oil-consuming nations.

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U.S.-China Trade Agreement Boosts Market Sentiment

Investors also reacted to the new trade agreement between the U.S. and China, under which President Donald Trump agreed to roll back certain tariffs on Chinese imports. In return, China committed to resume soybean purchases, maintain rare earth exports, and strengthen efforts against fentanyl trafficking.

Despite this development, some caution remains in the market, with investors wary that the tariff truce may be temporary, given the history of trade negotiations that later faced complications.

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Looking Ahead: Stable Economic Environment Supports Canadian Stocks

The TSX’s modest gains on Thursday highlight a cautious optimism in Canada’s stock market, underpinned by:

• A potential stabilization of interest rates,
• Strong technology and materials sector performance,
• Positive healthcare earnings announcements, and
• Progress in global trade negotiations.

Investors will continue to monitor the Bank of Canada’s policy decisions, U.S. economic indicators, and international trade developments as key drivers of market momentum heading into the final months of 2025.