TSX, U.S. Markets Hit Record Highs Amid Broad Rally

Canada's main stock index, the S&P/TSX Composite, reached new record highs driven by strength in industrial, consumer discretionary, and real estate stocks, while energy shares showed mixed performance. U.S. markets also hit record levels, with the Dow Jones, S&P 500, and Nasdaq all rising amid optimism that the Federal Reserve will cut interest rates next week following a mixed U.S. inflation report. Despite a slight monthly increase in consumer prices, inflation remained broadly in line with expectations, supporting expectations of a 25 basis point rate cut. The breadth of the rally extended beyond major tech and AI stocks to include health care, semiconductors, home builders, banks, and even some retail and profitless tech companies, signaling widening market confidence. Additionally, producer price data indicated cooling inflation pressures, which contributed to investor confidence. The Canadian dollar strengthened slightly against the U.S. dollar, and commodity prices such as oil and metals influenced sector movements on the TSX.