Canadian, U.S. markets rise amid less volatility ahead of holiday Thursday in U.S.

The Bay Street Financial District is shown next to the CN Tower in Toronto on Friday, Aug. 5, 2022. THE CANADIAN PRESS/Nathan Denette

Canada’s main stock index finished nearly 280 points higher while U.S. markets also gained ground after a recent period of volatility.

Kathrin Forrest, equity investment director at Capital Group, said that North American equity markets saw gains across the board on Wednesday, building on gains from earlier in the week.

“Over the past two weeks there was some nervousness in markets, but just since late last week equity volatility has settled back down,” she said.

Forrest said that Canada’s benchmark index was benefiting from gains in the basic materials sector amid strength in precious metals like silver and gold. The February gold contract was up US$25 at US$4,202.30 an ounce.

“Over the past week, the TSX materials index is up over five per cent, year-to-date it’s up almost 90 per cent, and it remains a key driver behind lifting the TSX overall by around 26 per cent year-to-date,” she said.

She added that while hopes of lower U.S. interest rates drove gains across North American markets on Wednesday, a rate cut from the U.S. Federal Reserve would also help the materials sector.

“Lower interest rates are in general supportive of precious metals prices. You just reduce the opportunity cost essentially for holding those precious metals as an alternative store of value,” Forrest said.

In New York, the Dow Jones industrial average was up 314.67 points at 47,427.12. The S&P 500 index was up 46.73 points at 6,812.61, while the Nasdaq composite was up 189.10 points at 23,214.69. U.S. markets will have a shortened week due to the Thanksgiving holiday and will be closed on Thursday, while opening for shorter hours on Friday.

The S&P/TSX composite index was up 279.60 points at 31,180.25.

Stocks have been rallying as comments from Federal Reserve officials have given traders more confidence the central bank will again cut interest rates at its meeting in December. Traders are betting on a nearly 83 per cent probability that the Fed will cut next month, according to data from CME Group.

“A key source of support for markets has been greater confidence in an additional 25 basis point rate cut by the U.S. Federal Reserve at its next meeting on Dec. 10,” Forrest said.

The Fed is facing an increasingly difficult decision on interest rates as inflation rises and the job market slows. Cutting interest rates further could help support the economy as employment weakens, but it could also fuel inflation.

Technology companies also accounted for much of the gains in U.S. markets.

Dell Technologies climbed 5.8 per cent after saying it has received record orders for its artificial intelligence servers. Dell and other technology companies had fallen earlier in the month as investors worried the prices for their stocks had got too frothy amid the frenzy over AI. Nvidia, the market’s most valuable company, rose 1.4 per cent.

“Market sentiment around AI has also regained confidence. Following some positive company-specific news last week, including ongoing strength in revenue generation, as well as progress in AI model capabilities,” Forrest said.

The Canadian dollar traded for 71.13 cents US compared with 70.90 cents US on Tuesday.

The January crude oil contract was up 70 cents US at US$58.65 per barrel.

This report by The Canadian Press was first published Nov. 26, 2025.

Daniel Johnson, The Canadian Press