TORONTO, September 3, 2026, 18:52 EDT — The TSX rose 1.5% as mining and technology shares posted strong advances, marking the index’s best rally in a month.
- The S&P/TSX Composite rose 1.50% to 36,633.12 at the 16:00 EDT close, up 541.51 points.
- Technology rose 3.7%, materials climbed 3.1% and financials gained 1.4% at the Toronto close.
- Traders lower the implied probability of a September Federal Reserve rate hike to 50.4% from 63.2% the previous day.
Canada’s benchmark stock index rose 541.51 points, or 1.50%, to 36,633.12 at Thursday’s 16:00 EDT close. The S&P/TSX Composite posted its sharpest one-day advance in about a month. Miners, technology firms and banks climbed as traders dialed back expectations for a September U.S. rate hike, according to Reuters’ closing market report.
The rally was driven by the index’s largest sectors. As of August 31, financials made up 34.0% of the benchmark, materials 19.0%, and technology 8.0%, according to S&P Dow Jones Indices. Together, these sectors represent about 60% of the Canadian market index.
Investors got a more precise short-term rate outlook. Federal Reserve Governor Christopher Waller said Thursday he would favor holding rates at the September 15-16 meeting if disinflation continues. He would back a hike if that trend weakens, according to his prepared remarks. By 16:46 EDT, futures implied a 50.4% probability of a September hike, down from 63.2% on Wednesday, Reuters reported.
Toronto led the North American close
Sources: The Canadian Press and Reuters. Dow and S&P 500 percentages are calculated from the reported point changes and prior closes.
Toronto outperformed the three major U.S. indexes. At 16:00 EDT, the Nasdaq Composite gained 1.40% to 26,584.06. The Dow advanced 624.16 points, or 1.18%, to 53,686.11. The S&P 500 rose 81.11 points, or 1.06%, to 7,747.71. Gains in both growth stocks and commodity producers point to relief from rate pressures.
Sector performance drove most of the Canadian gain. Using August 31 benchmark weights and Thursday’s closing sector returns, materials contributed about 0.59 percentage points, financials 0.48 points, and technology 0.30 points, for a total near 1.36 points. Index weights shift intraday, so this is an estimate, but it highlights how those three groups accounted for the bulk of the 1.50% headline return.
The three engines of the TSX rally
Sector price returns at 16:00 EDT on September 3.
Closing returns: Reuters. August 31 weights: S&P Dow Jones Indices. Contributions are simple weight-times-return estimates.
Precious-metals stocks led gains. Discovery Mining Ltd. (TSE:DSV) rose 6.47% to C$13.33 at 16:00:01 EDT. Lundin Gold Inc. (TSE:LUG) climbed 4.22% to C$101.58, and Barrick Mining Corp. (TSE:ABX) added 3.14% to C$63.03, both at 16:00 EDT. Prices and times are from Google Finance, Lundin Gold’s quote and Barrick’s quote.
Technology rose 3.7%, outpacing materials. Thomson Reuters Corp. (TSE:TRI) gained 5.01% to C$153.97 at 16:00 EDT with about 872,700 shares traded, above the average 728,500. Financials added 1.4%. Bank and software stocks extended the rally beyond gold and silver producers.
The index opened higher and stayed firm, rising 0.8% to 36,383.25 by 09:30 EDT. It touched 36,550.03 near 12:00 EDT, then gained another 83.09 points, or 0.23%, to the close. Roughly 15% of the day’s 541.51-point advance came after noon. The cash index last updated at 16:00 EDT; no later session print was available as of 18:52 EDT.
Most of the gain was in place by noon
Index levels during the September 3 Toronto cash session.
Opening level: Reuters. Noon level: Baystreet.ca. Closing level: Reuters.
Canadian economic data showed July merchandise exports fell 2.3% to C$76.1 billion while imports rose 2.2% to C$75.4 billion, Statistics Canada reported at 08:30 EDT. The trade surplus narrowed to C$769 million from C$4.2 billion. The Canadian dollar traded at 72.52 U.S. cents near the 16:00 EDT equity close, up from 72.13 cents Wednesday.
The domestic rate outlook remains a key factor. The Bank of Canada kept its overnight target at 2.25% on Wednesday. It reported inflation near 3%, with inflation excluding gasoline at 2.2% in July and core measures close to 2%. Ongoing energy costs or new tariffs could still raise prices. Banks face higher interest income but softer credit demand.
Canada’s August jobs data is due at 08:30 EDT on September 4. Statistics Canada’s Labour Force Survey is expected to show a 15,000 job gain and a 6.4% unemployment rate, according to a Reuters poll cited by The Canadian Press. U.S. payroll numbers are released simultaneously. Strong results could revive rate hike expectations; weaker numbers may challenge Thursday’s technology and gold gains.
Kathleen Brooks, research director at XTB, called the move a temporary pause. “After a rough start to September, it could be time to take a breather,” she told Reuters. The TSX rose 1.50% Thursday but was still down 0.55% over five sessions at 17:00 EDT.
Risks: A drop in gold, silver or copper could hurt the sector driving recent gains. Strong jobs or inflation figures may revive rate-hike bets and pressure technology stocks. With 69.8% of the benchmark in financials, materials and energy, it remains exposed to credit shifts, commodity swings and Middle East tensions.
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