2025.09.1213:45:11UTC+00TSX Struggles for Direction

On Friday, the S&P/TSX Composite Index hovered around the 29,410 level as investors took a breather following two weeks of unprecedented market rallies. Their focus has shifted towards the anticipated interest-rate cuts by the Bank of Canada and the US Federal Reserve expected next week. The likelihood of the BoC cutting rates increased after employment data revealed a loss of approximately 65,500 jobs in Canada in August, raising the unemployment rate to 7.1%. In the US, consumer price index figures aligned closely with expectations, supporting the case for Fed rate cuts. Markets have now priced in roughly 75 basis points of rate reductions for this year, with some traders even anticipating a half-point cut next week. Energy stocks emerged as top performers after reports of a Ukrainian drone strike disrupted operations at Russia’s Primorsk oil terminal, thereby tightening local supply and shifting demand to alternative sources. Meanwhile, technology and financial sectors underperformed. Despite these shifts, the TSX was on track to achieve weekly gains of slightly over 1%.