Canadian Stocks Advance Amid Increasing Expectations Of Fed Rate Cut

(RTTNews) - Canadian stocks move higher on Friday amid increasing expectations of a rate cut by the U.S. Federal Reserve even as investors assess today's economic releases.

After opening a little above yesterday's close, the benchmark S&P/TSX Composite Index held the momentum gained early in the session and traded firmly positive throughout the session before settling at a new record closing high of 31,382.78, up by 186.07 points (or 0.60%).

Days before, U.S. President Donald Trump, who has expressed his desire to have a low-interest-rate regime, several times urged Treasury Secretary Scott Bessent to fix the "too high" interest rates.

Among the U.S. Federal Reserve's board of governors, Michelle Daly, Christopher Waller, and John Williams, have all recently indicated that another rate cut is warranted this year.

Specifically, last Friday, the New York Fed President John Williams emphasized the need for a rate cut in his dovish speech.

On Tuesday, the Conference Board data revealed that consumer confidence had declined to its lowest level since April.

Days before, Bloomberg reported that Kevin Hassett is likely the leading candidate to succeed the current Fed Chair Jerome Powell as Federal Reserve Chair when his term concludes in May.

All these developments have reinforced expectations among traders that the U.S. central bank will trim interest rates next month.

Currently, CME Group's FedWatch Tool is indicating that traders are betting on an 86.9% chance of a quarter-point rate cut at the Fed's December 9-10 meeting.

Data released by Statistics Canada today revealed that the Gross Domestic Product expanded at an annualized 2.6% for the third quarter 2025, bouncing back from a 1.8% drop in the previous period, much higher than forecasts of 0.5%. Notably, it is the strongest increase in GDP this year.

On a quarterly basis, GDP rose by 0.6% on quarter in the third quarter following a revised 0.5% contraction in the previous period.

On a monthly basis, the GDP contracted by 0.3% from October, according to a flash estimate. Output from goods-producing industries weakened in October while services output also fell.

Prime Minister Mark Carney is taking a series of steps to cushion the economy facing the impact of Trump's tariffs.

Carney signed an agreement with Alberta's premier Danielle Smith. The deal rolls back climate rolls to increase investments in energy sector. This also scraps a planned limit on emissions on the oil and gas sector as well as shuns rules on clean electricity production.

Carney also stated that the U.S. tariffs and the emerging uncertainty is set to wipe out $50 billion from Canadian economy.

On the business front, Zoomd's net earnings were $3.8 million, a 20% increase compared to third quarter last year, aided by strong margins and frugal expense structure. For the three-month period, earnings per share were C$0.06. For the reported quarter, total operating expenses were $3.2 million, a 5% decline compared to the same quarter last year. The company's adjusted EBITDA was $4 million. In the third quarter, the company's revenues were $16.1 million.

Major sectors that gained in today's trading were Materials, Energy, and Financials.

Among the individual stocks, Aya Gold and Silver Inc, Endeavor Silver Corp, First Majestic Silver Corp, and Vermilion Energy Inc were the prominent gainers.

Major sectors that lost in today's trading were Healthcare and Consumer Discretionary.

Among the individual stocks, Aritzia Inc, Gildan Activewear Inc, Dollarama Inc, and Sienna Senior Living Inc were the notable losers.