The TSX closed slightly higher as gains in technology and financials offset losses in materials. TD Bank’s earnings beat and digital focus fueled optimism.
Canada’s main stock index ended slightly higher on Thursday, as strong earnings from Toronto-Dominion Bank (TD Bank) and modest gains in the technology sector offset a decline in materials stocks caused by a pullback in gold prices.
The S&P/TSX Composite Index rose by 14.84 points, or 0.1%, closing at 25,854.01, hovering near record highs achieved earlier in the week. Investor optimism was buoyed by easing global trade tensions and a favorable domestic economic outlook.
A major catalyst for Thursday’s gain was TD Bank, Canada’s second-largest lender, which surged 3.2% after posting better-than-expected second-quarter earnings. The bank attributed its performance to strong results from its wholesale banking division. In a strategic move, TD Bank also announced plans to lay off 2% of its workforce to improve efficiency and focus on digital and AI-driven investments.
The financials sector, heavily weighted on the TSX, climbed 0.6%, in tandem with the technology sector, which also advanced 0.6%, rebounding from previous losses.
However, gains were capped by a downturn in the materials sector, which slid 0.8%. The drop came as gold prices retreated, dragging down shares of mining and fertilizer companies.
Meanwhile, in the U.S., markets remained mostly flat as Treasury yields eased following the House of Representatives’ approval of President Donald Trump’s tax and spending bill. Analysts say this legislative progress provided short-term relief but didn’t substantially move broader markets.
Despite the mixed results across sectors, the TSX’s resilience signals cautious optimism among investors navigating a complex global economic landscape.