Toronto Stock Market Rallies as Technology and Financial Shares Lead Gains

March 14 – Toronto: Canada’s main stock index surged on Friday, driven by strong performances in the technology and financial sectors, as Mark Carney was sworn in as the new Prime Minister of Canada. However, investor sentiment remained cautious amid concerns that the recent tariff-driven market selloff might not be over.

The S&P/TSX Composite Index rose 350.17 points (1.45%), closing at 24,553.40, marking its biggest single-day gain since August 8. Despite Friday’s rebound, the TSX still posted a 0.83% weekly decline after hitting a four-and-a-half-month low on Thursday.

US Equities Rebound After Trade Turmoil

US markets also saw a recovery after a week of volatility, as investors assessed the economic impact of the Trump administration’s trade policies.

“We are seeing a relief rally in the markets today,” said Philip Petursson, Chief Investment Strategist at IG Wealth Management. However, he warned that this may be nothing more than a temporary “dead-cat bounce,” as no significant positive developments have shifted market sentiment.

Carney Reshapes Cabinet to Address Trade Challenges

Prime Minister Mark Carney, a former Bank of Canada and Bank of England governor, made key cabinet changes with a focus on navigating economic tensions with Washington.

Despite ongoing trade concerns, Petursson remains optimistic about Canada’s market outlook, stating, “We still believe the Canadian index can continue to outperform its US counterpart, as TSX-listed companies are more attractive in terms of valuation and less sensitive to tariffs.”

So far in 2025, the TSX has fallen 0.71%, compared to the S&P 500’s 4.13% decline, reflecting stronger relative performance.

Technology and Financial Sectors Lead the Gains

All ten major sectors on the TSX posted gains on Friday, with notable performances from:

• Technology sector: +2.8%

• Financial sector: +1.9%

• Energy sector: +1.6%

Meanwhile, oil prices settled nearly 1% higher at $67.18 per barrel, and gold hit a new record high above $3,000 per ounce, boosting investor interest in commodities. The materials sector, which includes mining stocks, advanced 1%.

NFI Group Soars on Contract Win

One of the biggest winners of the day was NFI Group Inc, whose shares surged 20.79% after the bus manufacturer reported strong quarterly earnings and announced that its subsidiary had secured a major contract with York Region Transit.

Market Outlook

While Friday’s rally provided some relief, uncertainty surrounding global trade and economic policy remains a key concern for investors. Analysts will closely monitor Carney’s policy moves and developments in the US to gauge the future trajectory of Canadian equities.