Canadian Market Shows Galaxy-Like Expansion
Canadian Market Advances Amidst Mixed Economic Signals
On Tuesday, August 20, 2025, the Canadian market, represented by the S&P/TSX composite index, experienced a significant rise of over 170 points. This growth was predominantly driven by strength in traditional sectors such as energy, utilities, and base metals, despite a decline in U.S. markets on the same day.
The technology sector, a key driver of market gains, particularly for growth stocks in the U.S., continued to perform strongly. Although this growth is primarily U.S.-focused, the strong tech performance indirectly benefits Canada through global investment trends and sector interconnections.
In the communications sector, Quebecor Inc., BCE Inc., and Rogers Communications saw gains of 2.3%, 1.8%, and 1.5%, respectively. Other major gainers in various sectors include TFI International, Hut 8 Corp., BRP Inc., Magna International, Aritzia, Dayforce, Celestica Inc, and MDA Space, which recorded gains of 3 to 6%. The financials sector also saw prominent gainers, with Brookfield Asset Management, Goeasy, Brookfield Corporation, Onex Corp, IA Financial Corporation, and Igm Financial leading the way.
In the healthcare sector, Bausch Health Companies and Sienna Senior Living Inc saw gains of 1.7% and 1.3%, respectively. However, Gildan Activewear, Open Text Corporation, Thomson Reuters, Waste Connections, Wheaton Precious Metals, EQB Inc., Alamos Gold, Emera Incorported, and Enbridge experienced declines of 1 to 5% in the market.
Easing trade tensions and expectations of an interest rate cut by the Federal Reserve next month have aided sentiment in the market. The U.S. government has extended its pause on higher tariffs for Chinese goods until November 10. Year-over-year, total permits increased 6.9% in Canada, but the total value of building permits in Canada fell 9.0% month-over-month to $12.0 billion in June, marking the steepest decline since June 2024.
Inflation data released by the U.S. Labor Department showed that the consumer price index rose by 0.2% in July, and the core consumer price index, which excludes food and energy prices, climbed by 0.3%. The annual rate of growth by consumer prices in July remained unchanged at 2.7%. However, economists expected the pace of growth to inch up to 3%, but it accelerated to 3.1%.
The Canadian market is up in positive territory during early afternoon on Tuesday, but the benchmark S&P/TSX Composite Index is down 121.82 points or 0.44% at 27,897.05 nearly an hour past noon. Despite the mixed signals from trade and interest rate developments, the Canadian market continues to show resilience, supported by sectoral strength and global investment trends.
- In contrast to the decline in U.S. markets, the technology sector in Canada, a key driver of market gains, continued to perform strongly, providing indirect benefits to the market through global investment trends and sector interconnections.
- Among the prominent gainers in the financials sector, some leading companies include Brookfield Asset Management, Goeasy, Brookfield Corporation, Onex Corp, IA Financial Corporation, and Igm Financial, contributing to the Canadian market's resilience despite mixed economic signals.
