TSX up over 250 points on basic materials strength, U.S. markets also positive

TORONTO – Canada’s main stock index rose more than 250 points Wednesday, helped by strength in the basic materials sector, while U.S. markets also gained ground.

The S&P/TSX composite index was up 265.88 points at 36,091.61.

Canadian investors kept a close eye on the Bank of Canada, which held its benchmark interest rate steady at 2.25 per cent again on Wednesday. The move was widely expected by economists.

Theresa Shutt, chief investment officer at Harbourfront Wealth Management, said the rate hold was a “good sign, despite the fact that inflation has been creeping higher.”

Bank of Canada governor Tiff Macklem said Wednesday that the persistence of the Middle East conflict has increased inflationary risks as global energy prices continue to float higher.

A fresh tariff battle with the United States, meanwhile, threatens Canada’s burgeoning economic recovery.

“We’re seeing some rebound in the Canadian economy … but on the flip side of that obviously are tariffs as well as how we retaliate and what that does to our outlook from an economic perspective,” Shutt said.

“That may lead businesses to delay investment and hiring decisions until that trade picture really crystallizes.”

CIBC chief economist Avery Shenfeld said it was no surprise the central bank left its key rate unchanged “amid the fog of a trade war.”

Shenfeld said CIBC sees “little prospect” for any change in the policy rate this year, given that both the U.S. tariff and Iran war fronts could shift in the months ahead.

Elsewhere on the TSX, shares of Alimentation Couche-Tard Inc. fell 2.4 per cent after it reported first-quarter results. The convenience store chain’s chief executive officer, Alex Miller, said sales of packaged carbonated soft drinks, salty snacks and sweets have dropped as the cost of living and fuel prices rose.

In New York, the Dow Jones industrial average was up 295.07 points at 53,061.95. The S&P 500 index was up 35.13 points at 7,666.60, while the Nasdaq composite was up 118.05 points at 26,217.83.

Stocks rose as gains by big technology companies and relatively steady oil prices and bond yields helped boost the market after a downbeat start to the week.

The October crude oil contract was up 79 cents US at US$91.01 per barrel.

Oil prices held relatively steady despite the intensification in the six-month-long U.S. war with Iran. The U.S. attacked sites in Iran over the weekend, ending a lull in major hostilities and Iran has since retaliated against sites around the Gulf region.

The yield on the 10-year Treasury fell to 4.78 per cent from 4.79 per cent late Tuesday.

The Canadian dollar traded for 72.13 cents US compared with 71.96 cents US on Tuesday.

The December gold contract was up US$18.20 at US$4,414.60 an ounce.

This report by The Canadian Press was first published Sept. 2, 2026.

— With files from The Associated Press

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