Stock markets rise, turning the page on a tumultuous month for equities

TORONTO – Canada’s main stock index finished over 180 points higher Friday, as U.S. markets also rose higher amid a change in sentiment. 

“The last week was a bit of a risk-off week, and this week we’re back on track and it shows that the path of least resistance is likely still higher for the market, meaning that when there’s no news, the no-news reaction looks to be more green than red,” said Pierre-Benoît Gauthier, vice-president of investment strategy at IG Wealth Management. 

In the Canadian stock market, he said precious metals were the big winner on the day, with the sector facing a positive backdrop going into next year. 

Amid outsized gains for the basic materials sector this year, he noted that most of the companies are “actually quite cheap” for investors. 

Gauthier added that the Canadian stock market has outperformed the economy this year in a trend that is expected to continue going forward. 

Meanwhile, the Canadian economy topped expectations with a sharp rebound in the third quarter as a stronger trade balance helped fuel the recovery from a tariff-driven contraction. Statistics Canada said Friday that real gross domestic product rose 2.6 per cent on an annualized basis in the third quarter of 2025. 

“It shows that the recession fears that plagued us all year long are subsiding. Such a beat is incredibly positive for the Canadian economy,” Gauthier said. 

The S&P/TSX composite index was up 186.07 points at 31,382.78.   

In the U.S. stock market, Wall Street rose for a fifth straight day to put the wraps on a volatile month.

In New York, where stock markets were closed Thursday for the U.S. Thanksgiving holiday, the Dow Jones industrial average was up 289.30 points at 47,716.42. 

The S&P 500 index was up 36.48 points at 6,849.09, while the Nasdaq composite was up 151 points at 23,365.69.

Stocks swooned around mid-month as investors worried that stocks boosted by the frenzy around artificial intelligence such as Nvidia had grown too expensive. Nvidia lost 1.8 per cent Friday and closed the month with a double-digit loss. Oracle fell 23 per cent in November, while Palantir Technologies sank 16 per cent.

Some tech stocks did notch monthly gains, most notably Alphabet, which rose nearly 14 per cent, due to excitement about its recently released Gemini AI model.

Gauthier said that the mindset among investors has changed regarding large U.S. tech companies, and there is now a divergence within the group, with the market now looking to choose “winners and losers.” 

The market turned around on hopes the U.S. Federal Reserve will again cut interest rates at its meeting next month. Recent comments from Fed officials have given traders more confidence the central bank will again cut interest rates at its meeting that ends Dec. 10. Traders have bet on a nearly 87 per cent probability that the Fed will cut next month, according to data from CME Group.

“The market is feeling more confident that the Fed will indeed cut this December,”  Gauthier said. 

The Canadian dollar traded for 71.54 cents US compared with 71.26 cents US on Thursday.

The January crude oil contract was down 10 cents US at US$58.55 per barrel, while the February gold contract was up US$52.60 at US$4,254.90 an ounce.

This report by The Canadian Press was first published Nov. 28, 2025.

— With files from The Associated Press.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)