TSX Climbs To New Record High As Stocks Rise Again On Fed Rate Cut Hopes

(RTTNews) - The Canadian stock market's benchmark index S&P/TSX Composite climbed to a new record high Wednesday morning as rising expectations of an interest rate cut by the Federal Reserve next month triggered another round of buying in several sectors.

Optimism about Fed rate cut has increased following dovish comments from a few leading Fed officials. CME Group's FedWatch Tool indicates the chances the Fed will lower rates by 25 basis points next month have soared to 82.9% from just around 30% a week ago.

Materials stocks are up sharply, buoyed by strong metal prices. Consumer staples stocks are turning in another good performance. A few stocks from consumer discretionary, communications and real estate sectors are also up with sharp gains.

The S&P/TSX Composite rose to a high of 31,123.65 earlier in the session, was up 207.29 points or 0.67% at 31,107.94 a few minutes before noon.

The Materials Capped Index was up 2.3% a little before noon. Aya Gold & Silver, the top gainer in the index, was up 8.7%. Discovery Silver Corp gained nearly 7%, while Endeavour Silver Corp and Ivanhoe Mines surged 6.3% and 6.1%, respectively.

Pan American Silver Corp., Seabridge Gold, First Majestic Silver Corp., Hudbay Minerals, Agnico Eagle Mines, Kinross Gold Corp., Eldorado Gold and Aris Gold Corporation were among the other prominent gainers.

Consumer staples stocks Alimentation Couche-Tard and The North West Company, and consumer discretionary stock Aritzia Inc. were up 2 to 3%.

Meanwhile, Manulife Financial, Industrial Alliance, Kinaxis, Sun Life Financial, Cogeco Cable, Boralex and Fairfax Financial Services were down in negative territory, losing between 1% and 2.5%.