TORONTO – Canada’s main stock index gained more than 300 points on Wednesday, helped by strength in the materials sector, while U.S. markets also climbed higher as corporate earnings came into focus.
With more firms reporting third-quarter results, Mona Mahajan, head of investment strategy at Edward Jones, said companies in Canada and the U.S. are generally looking at “double-digit earnings growth for this year,” which will be supportive of equities.
“In Canada, the materials sector plays a large role in driving earnings growth and obviously big beneficiaries from gold prices and precious metal prices broadly,” she said.
“But it does feel like, as we’re looking into the year ahead, there is a sense that earnings can continue to deliver double-digit returns in both the U.S. and Canadian corporations.”
Since a low point in April, Mahajan said the TSX has risen over 30 per cent. Going forward, she noted there could be a pullback or a consolidation of the recent gains, but noted fundamentals remain intact for both Canadian and U.S. markets.
The release of Canada’s latest federal budget on Tuesday was also positive for investor sentiment, Mahajan said. She pointed to increased defence spending, a focus on becoming a “clean energy superpower,” and diversifying trade away from the U.S.
“Those points do support the better sentiment we’re seeing in markets today as well,” she said.
The S&P/TSX composite index was up 325.66 points at 30,103.48.
Markets also saw a “little bit of a rebound” after a technology-driven selloff on Tuesday, Mahajan said.
Mahajan noted Tuesday’s moves were driven by large AI and technology names, like Palantir, that delivered positive earnings and guidance, “but markets still were a bit spooked by valuation.”
“Today’s move seems to be a bit of a sigh of relief,” she said, noting that recent ADP U.S. employment figures appeared to be better than previous reports that had shown a softer trend.
A monthly report from ADP showed that private payrolls rose more than expected in October. The report offers a partial glimpse into the job market, which has been generally weakening and raising broader concerns about economic growth.
Company earnings and forecasts were once again a big focus for Wall Street, with results coming from a broad spectrum of industries.
McDonald’s rose 2.2 per cent after reporting that its sales benefited from the return of its popular Snack Wraps in the third quarter. International Flavors & Fragrances jumped 4.1 per cent after beating Wall Street’s latest quarterly profit forecasts.
In New York, the Dow Jones industrial average was up 225.76 points at 47,311.00. The S&P 500 index was up 24.74 points at 6,796.29, while the Nasdaq composite was up 151.16 points at 23,499.80.
The Canadian dollar traded for 70.82 cents US compared with 70.97 cents US on Tuesday.
The December crude oil contract was down 96 cents US at US$59.60 per barrel. The December gold contract was up US$32.40 at US$3,992.90 an ounce.
This report by The Canadian Press was first published Nov. 5, 2025.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
