The Canadian stock market continued to climb for the third straight session on Tuesday as strong commodity prices and growing expectations of a more accommodative U.S. Federal Reserve helped keep buying interest alive despite persistent geopolitical and trade risks. The S&P/TSX Composite Index rose by 131 points, or 0.4%, to settle at 35,650, reaching its highest closing level in more than a week.
Nearly all key market sectors except industrials ended the session in green, but the market rally was mainly driven by strong buying in technology, consumer cyclical, and utility stocks.
Top TSX Composite movers and active stocks
ATCO (TSX: ACO.X) jumped by more than 9% to $81.02 per share, making it the top-performing TSX stock for the day. In a big development, ATCO, its subsidiary Canadian Utilities (TSX: CU), and Emera (TSX: EMA) announced a major merger and spin-off deal. ATCO currently controls Canadian Utilities, which houses much of its electricity and natural gas utility business.
Under the deal, Canadian Utilities will combine with Emera to create a much larger utility company with about $72 billion in enterprise value. At the same time, ATCO’s other businesses, including housing and defence services, will be separated into a new publicly traded company called New ATCO. After the transaction, ATCO shareholders will receive shares in both Emera and New ATCO, which likely explains the strong buying in ATCO stock. In contrast, Emera fell nearly 3%, while Canadian Utilities slipped about 2% after the announcement.
Cameco, BlackBerry, and Quebecor were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 5.3%.
In contrast, West Fraser Timber, Extendicare, Discovery Mining, and DPM Metals fell by at least 3%, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Athabasca Oil, TD Bank, Canadian Natural Resources, Cenovus Energy, and Telus were the five most active stocks on the exchange.
TSX today
Gold and silver prices fell sharply in early Wednesday trading, while oil and base metals remained mixed. Given these largely negative commodity signals, the TSX could struggle to extend its recent rally today, especially as sharp declines in precious metals trigger renewed selling in mining shares.
Canadian investors will also closely monitor the minutes from the Federal Open Market Committee’s (FOMC) latest meeting, as any indication that policymakers remain reluctant to cut rates aggressively could revive pressure on equities.
Canada-U.S. trade tensions are another major concern, especially as tariffs and import bans increasingly threaten to raise business costs, restrict product availability, and weaken cross-border demand.
Meanwhile, continued attacks on commercial shipping and elevated tensions around the Strait of Hormuz could keep energy prices volatile and add another layer of risk for the broader TSX.