Canada’s main stock index rose to another record high on Wednesday, led by financial and metal mining shares, as investors cheered U.S. inflation data, as well as an upbeat travel outlook from Air Canada and recent signs the domestic economy is strengthening. The S&P 500 and the Nasdaq also ended higher, helped along by upbeat quarterly results from CoreWeave and other AI infrastructure firms.
The S&P/TSX Composite Index ended up 186.22 points, or 0.5%, at 36,662.14, surpassing Tuesday’s record closing high.
“We are seeing continued bullishness toward Canada,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “We had that spectacular employment report earlier this month and I think that woke a lot of people up to just how well Canada is doing.”
Data last Friday showed that Canada’s economy added many more jobs than expected last month and the unemployment rate dropped to a two-year low.
Recent strength in commodity markets and upbeat corporate earnings have also contributed to positive sentiment toward the Toronto market, Cieszynski said.
The materials group, which includes metal mining shares, was up 0.7%. Gold rose 1% to a two-month high after a U.S. inflation reading matched expectations, bolstering bets that the Federal Reserve will keep rates on hold in September.
Heavily weighted financials added 1.1% and energy was up 0.4%. The price of oil settled 0.1% higher as attacks on ships in the Middle East continued and talks to end the Iran war hit an impasse.
Air Canada was a standout. Its shares surged 12.2% after the airline said it is expecting one of its strongest fall seasons, helped by corporate travel, despite cost pressures that led the carrier to set its latest annual core profit target below analysts’ expectations.
Just two of 10 major TSX sectors ended lower, including consumer staples. It was down 0.4%.
On Wall Street, the S&P 500 climbed 0.26% to end the session at 7,748.50 points. The benchmark is up about 13% so far in 2026.
The Nasdaq gained 0.54% to 26,588.49 points for the session, while the Dow Jones Industrial Average declined 0.04% to 53,770.27 points.
CoreWeave surged 19% after the AI cloud company lifted its annual capital spending forecast and topped second-quarter earnings estimates. Data center operators also rose, with IREN gaining almost 10% and Applied Digital up 4.9%. Data center company Nebius Group jumped 34%, helped by second-quarter results that beat expectations. Super Micro Computer surged 19% after the AI server maker forecast fiscal 2027 revenue above analyst expectations.
Chipmakers gained, with Nvidia rising 3% and Micron Technology adding 4.9%. The PHLX Semiconductor Index advanced about 2.5%. It remains down about 15% from its record-high close on June 22.
Eight of the 11 S&P 500 sector indexes rose, led by real estate, up 1.08%, followed by a 1.06% gain in information technology.
Wall Street’s fear gauge, the Cboe Volatility Index, dipped 0.8 point to 14.45, its lowest level since January.
Traders are now pricing in a 62% chance of the Fed holding rates at its September meeting, according to CME’s FedWatch Tool. Before the July inflation data was released, bets were split between a hike and no change.
Cava Group advanced 14.2% after the restaurant chain beat Wall Street expectations for second-quarter sales and core profit. Lumentum Holdings surged 13.6% after the photonic product maker forecast first-quarter revenue above analysts’ expectations and beat fourth-quarter estimates.
Across the U.S. stock market, advancing stocks outnumbered falling ones by a 1.7-to-one ratio. The S&P 500 posted 19 new highs and 2 new lows; the Nasdaq recorded 123 new highs and 95 new lows. Volume on U.S. exchanges was relatively light, with 15.5 billion shares traded, compared with an average of 17.5 billion shares over the previous 20 sessions.
Reuters, Globe staff