Canada’s main stock benchmark, the S&P/TSX Composite Index, closed at a record high on Tuesday, nearly reaching the psychological milestone of 25,000 points. The index gained up to 1% during the day, hitting 25,024.93, before slightly retreating to close 0.5% higher. This marked the 36th record close of the year, largely driven by the technology sector, which saw its strongest performance since March 2020.
A substantial rise in Shopify Inc. shares helped propel the index over this significant level. Shopify reported third-quarter revenue that surpassed analyst expectations, pushing its stock up by 21%—its best day since May 2023.
Financial stocks also rebounded following a sluggish 2023 and are anticipated to benefit under President Donald Trump’s policies, which include potential tax cuts and regulatory relaxation.
Colin Cieszynski, a portfolio manager at SIA Wealth Management, remarked that the index’s approach to 25,000 points provides a psychological boost for the Canadian market. Financial and technology stocks currently account for 43% of the S&P/TSX Composite. Year-to-date, the benchmark index has grown by 19%, benefiting from Bank of Canada rate cuts and strong performance in mining stocks.