TSX ends at record high

By the Editorial Team · Thursday, July 16, 2026

North American stock markets rose modestly as easing U.S. inflation data and strong earnings from major banks boosted investor confidence, with Canada’s main index closing at a record high. This positive momentum reduced expectations for an immediate Federal Reserve rate hike, although geopolitical tensions in the Middle East tempered investor optimism.

Stocks in North America rose modestly on Wednesday as easing U.S. inflation data and a strong start to the second-quarter earnings season encouraged investor confidence. Canada’s main stock index reached a new record closing level, while all three major U.S. equity benchmarks posted gains.

Financial shares led the advance on Bay Street, buoyed by positive earnings reports from major U.S. banks. BlackRock and Morgan Stanley exceeded quarterly profit expectations, with BlackRock shares climbing 6.6 percent and Morgan Stanley increasing 0.4 percent. The upbeat performance in U.S. financials helped set a broadly positive tone for Canadian bank stocks. Analysts currently anticipate a 23.7 percent year-over-year growth in S&P 500 earnings for the second quarter, according to recent LSEG data.

Inflation reports from the U.S. Labor Department offered further support to markets. Wednesday’s Producer Price Index (PPI) data showed inflation pressures easing for a second consecutive day, following Tuesday’s Consumer Price Index (CPI) report that pointed to cooling price growth. The combination of these reports contributed to lower bond yields in both the U.S. and Canada and dampened expectations of an imminent interest rate hike by the Federal Reserve. Market instruments now indicate a 10.2 percent probability of a 25-basis-point Fed rate increase at the end of this month’s policy meeting, down from 31 percent a week ago.

Despite the encouraging inflation figures, investors remained cautious due to heightened geopolitical tensions in the Middle East. Early optimism about a potential peaceful resolution waned as clashes escalated between U.S. and Iranian forces near the Strait of Hormuz.

The Dow Jones Industrial Average rose 150.91 points, or 0.29 percent, to close at 52,659.18. The S&P 500 gained 28.83 points, or 0.38 percent, finishing at 7,572.42, while the Nasdaq Composite added 162.22 points, or 0.62 percent, closing at 26,269.23.

In Canada, the S&P/TSX Composite Index advanced 95.66 points, or 0.3 percent, reaching 35,416.20, surpassing its previous record close set on June 16. The financial sector, which carries significant weight on the TSX, rose 1.6 percent, extending its year-to-date gains to 25.4 percent. EQB Inc., a digital financial services company, saw its stock jump 9.6 percent. Meanwhile, the materials sector declined 1.2 percent and energy shares decreased 0.5 percent. Oil prices settled 0.3 percent higher at US$79.60 per barrel.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.