TSX Extends Weekly Gains as Technology Shares Surge, Reaching Record High
July 25, 2025 – Toronto — Canada’s primary stock market index, the S&P/TSX Composite Index, continued its upward momentum on Friday, closing at a record high bolstered by strong performances in the technology sector. The index ended the day 122.09 points higher, a 0.5% increase, at 27,494.35, surpassing the previous record closing level reached earlier in the week on Wednesday. This marked a weekly gain of 0.7%.
Technology Leads the Charge
The significant rally in technology shares helped drive the overall market’s strength. The technology sector surged 1.8%, with notable gains including a 4.7% jump in Lightspeed Commerce’s shares. The company is preparing to release its earnings report next Thursday, which appears to be fueling investor optimism. Meanwhile, shares of the e-commerce giant Shopify climbed 2.5%, contributing further to the tech sector’s strong performance.
Industrials also saw positive movement, rising 0.7% thanks partly to gains in railroad stocks. Financials, a heavily weighted sector in the index, edged up by 0.5%. In contrast, the energy sector pulled back slightly, dropping 0.5% as oil prices declined 1.3%, settling at $65.16 per barrel.
Market Sentiment and Outlook
Market gains were underpinned by growing optimism around trade relations, particularly progress in negotiations on the U.S. side, as well as encouraging corporate profit reports. Angelo Kourkafas, senior global investment strategist at Edward Jones, commented that the market rally “has been supported by trade optimism as negotiations have progressed on the U.S. side and also corporate profits that are coming in pretty strong.”
Investor focus is now turning to a series of key upcoming events, including policy decisions due next week from the Bank of Canada (BoC) and the U.S. Federal Reserve. Additionally, Canada faces an August 1 deadline to finalize a trade deal with the United States, adding further significance to the near-term outlook.
Kourkafas cautioned, “That summer calm may be tested. We are seeing some signs of complacency, which raise the risk of near-term volatility, but fundamentals remain supportive.” He highlighted that the combination of strong corporate earnings and ongoing trade talks underpins the positive view of the market, despite the potential for fluctuations.
Bank of Canada Maintains Interest Rate
The Canadian central bank is expected to hold its overnight interest rate steady at 2.75% for the third consecutive meeting. This decision is influenced by recent signs of inflation rising and unemployment falling, according to a Reuters poll of economists. Despite holding rates steady, many experts anticipate that the BoC may implement at least two rate cuts later this year.
Summary of Market Performance on July 25, 2025:
- S&P/TSX Composite Index: +0.5%, closing at 27,494.35 (record high)
- Technology Sector: +1.8%
- Lightspeed Commerce (LSPD.TO): +4.7%
- Shopify (SHOP.TO): +2.5%
- Industrials Sector: +0.7%
- Financials Sector: +0.5%
- Energy Sector: -0.5%
- Oil Price: -1.3%, settling at $65.16/barrel
As the TSX builds on its weekly gains with technology shares leading the advance, market participants will be closely watching next week’s economic policy decisions and trade developments to gauge the sustainability of this positive trend.
Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Tasim Zahid and Rod Nickel
Photo credit: REUTERS/Chris Helgren (File Photo)
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