S&P/TSX Climbs as U.S. Stocks Show Mixed Performance
TORONTO — The primary Canadian stock index saw a slight uptick on Thursday, bolstered by gains in the financial sector, whereas US equity markets showed varied performance.
The S&P/TSX Composite Index rose by 14.84 points to reach 25,854.01.
On Thursday, TD Bank’s stock price rose alongside those of many other prominent Canadian banks, according to Allan Small, a senior investment advisor at iA Private Wealth.
He mentioned that the Toronto-headquartered bank presented a “reinvigorating” analysis of its second-quarter financial outcomes, even as they declared a 2% cut in their staff. The bank reported profits amounting to $11.1 billion or $6.27 per diluted share, marking an increase from last year’s profit of $2.6 billion or $1.35 per diluted share.
TD shares finished the day at $92.81 on the Toronto Stock Exchange, marking an increase of 3.2 percent.
“They focused on both the top and bottom lines, with virtually every aspect of their business improving—whether it was through wider net interest margins or allocating fewer funds for potential bad debts,” explained Small.
Trading revenues increased, and their restructuring in the U.S. is progressing smoothly since resolving that money laundering issue.
At the same time, investors to the south of us were “purchasing the dips,” he mentioned, with tech stocks taking the lead.
In New York, the Dow Jones industrial average fell by 1.35 points to reach 41,859.09. The S&P 500 index decreased by 2.60 points to stand at 5,842.01, whereas the Nasdaq composite climbed by 53.09 points to hit 18,925.73.
“It’s about the ups and downs,” stated Small.
I believe that for some reason, retail investors haven’t truly embraced the downturn we’ve witnessed recently. Instead, their approach was to purchase during the dips and remain steadfast. On average, these retail investors seized this chance to buy, and they have been duly compensated.
He mentioned that investors would be closely listening for updates from Washington, as the House approved a comprehensive bill on Thursday. This legislation includes tax incentives, reduced expenditures, financing for border protection, and other key points prioritized by U.S. President Donald Trump’s administration.
Republicans aim to solidify the permanence of individual income and estate tax reductions implemented during Trump’s initial term. Additionally, they intend to fulfill pledges from his 2024 electoral platform by avoiding taxes on tips, overtime, and certain types of auto loan interest. This legislation will now advance to the Senate for further consideration.
“That’s going to make a significant impact,” stated Small.
If the president manages to push through this extension of the Trump-era tax cuts, that will be crucial. It’s uncertain whether the markets approve since these tax reductions might lead to higher inflation and increase the national debt burden, but only time will tell.
Concerns over tax reductions exacerbating the U.S. federal government’s deficit led to increased yields this week, which could result in the equity markets experiencing their poorest performance in recent seven weeks. These shifts within the bond market might drive up borrowing costs for American homeowners seeking mortgages as well as various other types of credit.
The Canadian dollar was trading at 72.10 U.S. cents against 72.21 U.S. cents on Thursday.
The July crude oil contract decreased by 37 cents US to reach $61.20 per barrel, while the July natural gas contract fell by 10 cents US to stand at $3.64 per mmBTU.
The June gold contract fell by US$18.50 to reach US$3,295 per ounce, whereas the July copper contract increased by less than one cent to stand at US$4.68 per pound.
—With information from The Associated Press
The report from The Canadian Press was initially released on May 22, 2025.
Firms featured in this article include: (TSX:GSPTSE, TSX:CADUSD)
Sammy Hudes from The Canadian Press