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TSX Climbs 0.6% as Banks and Tech Lead, Loonie Near a 4-Week High and BoC Hike Odds Hit 80%

  Canadian Money Brief | Thursday, October 22, 2026 | Covers Wednesday’s close, plus an early look at this morning Stocks rose on both sides of the border on Wednesday. Canada’s S&P/TSX Composite Index gained 217.03 points, or 0.60%, to close at 36,324.99, led by the banks and tech. On Wall Street, strong earnings from SpaceX, Super Micro and Capital One powered a rebound in artificial intelligence stocks, and the Nasdaq Composite jumped 1.05%. Behind the rally, rate worries keep building. Traders now give the Bank of Canada roughly an 80% chance of raising its policy rate next Wednesday, and oil is still hovering near US$109 a barrel for Brent. This morning, U.S. futures are pointing lower. Market Snapshot: Wednesday, October 21 Close Index Close Change S&P/TSX Composite (Canada) 36,324.99 +0.60% S&P 500 (U.S.) 7,757.17 +0.58% Dow Jones Industrial Average 52,856.09 +0.69% Nasdaq Composite 26,702.86 +1.05% Russell 2000 2,781.02 +0.27% STOXX Europe 600 644.49 +0.92% Nik...
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Federal Feserve Lowers Interest Rates Amid Economic Uncertainty

 

In a move aimed at bolstering the economy, the Federal Reserve has cut interest rates by 25 basis points, bringing the new target range to 4.50%-4.75%. This decision marks the second consecutive rate cut by the central bank, following a larger 50-basis-point reduction in September.

The Federal Open Market Committee (FOMC) justified the rate cut as a necessary step to support its dual mandate of maintaining stable prices and maximizing employment. Recent economic data has shown mixed signals, with inflation cooling but the labor market showing signs of softening. The latest Personal Consumption Expenditures (PCE) index indicated that inflation rose 2.1% in September, close to the Fed’s 2% target, but core inflation remained steady at 2.7%.

Fed Chair Jerome Powell emphasized the importance of this adjustment in a press conference, noting that the central bank is committed to navigating the complex economic landscape to ensure sustainable growth. The unanimous vote by the FOMC reflects a cautious approach to monetary policy as the Fed continues to balance the risks of inflation and employment.

This rate cut is expected to make borrowing slightly cheaper for consumers and businesses, potentially stimulating economic activity. However, the Fed’s removal of certain language from its policy statement has raised questions about the pace and number of future rate cuts.

As the economic outlook remains uncertain, the Federal Reserve’s actions will be closely watched by markets and policymakers alike.


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