Canadian Stocks End Roughly Flat Amid Rate Cuts In Canada, US

(RTTNews) - Canadian stocks ended little changed on Wednesday even though, as investors anticipated, the Canadian central bank reduced the base rate to a three-year low and the US central bank also lowered rates.

After opening just below yesterday's close, the benchmark S&P/TSX Composite Index gathered momentum to reach an intraday high of 29,465.14. However, the index saw significant volatility in late-day trading before finally settling at 29,321.66, up by just 6.43 points (or 0.02%).

Five of the 11 sectors posted gains today with Communication Services sector leading the pack.

The Bank of Canada cut its benchmark interest rate by 25 basis points to 2.50% in its September 2025 decision today. Announcing the new rates, Bank of Canada Governor Tiff Macklem stated that the risks have shifted since the central bank's last interest rate decision in July.

Macklem added that cracks in the labour market and a sharp drop in exports are threatening growth while earlier signs of underlying inflation pressures are fading.

Macklem agreed that the Canadian government's decision to withdraw retaliatory tariffs against the US will cool down inflation modestly. However, he stressed that a lot of unknowns are tied to US tariffs and the global trade disruption.

Data released by Statistics Canada on Tuesday revealed that annual inflation stood at 1.9% in August, with core inflation hovering around 3% year-over-year. August saw a loss of 60,000 jobs, indicating a weak labor market.

Meanwhile, in the US, the Federal Reserve followed suit and cut the federal funds rate by 25 basis point today bringing the target range to 4.00% to 4.25%, in line with expectations.

Recent labor market data in the US showed fissures in the US, though inflation remains stubborn.

After being hit by US President Donald Trump's 35% tariffs on a majority of Canadian exports to the US, Canadian Prime Minister Mark Carney is working hard to bring back the economy on track with a slew of measures.

Even as Carney's officials are negotiating a trade deal with their US counterparts, the process came to a standstill after an appeals court in the US deemed the "reciprocal tariffs" as illegal.

Presently, Trump's administration is battling against the verdict in the US Supreme Court, where the hearings begin in November.

However, these unforeseen developments have put countries negotiating with the US for finalizing a tariff framework in a confusion (including Canada) as the outcome of the legal process is now uncertain.

Major sectors that gained in today's trading were Communication Services (0.45%), Healthcare (0.43%), Consumer Discretionary (0.39%), and Financials (0.14%).

Among the individual stocks, Cogeco Communications Inc (1.12%), Bausch Health Companies (1.18%), Magna International (1.48%), and TMX Group Ltd (2.83%) were the prominent gainers.

Major sectors that lost in today's trading were Industrials (0.33%), Energy (0.37%), Real Estate (0.40%), and IT (0.93%).

Among the individual stocks, Aecon Group Inc (2.43%), Boyd Group Services (2.19%), Allied Properties REIT (1.68%), and Celestica Inc Sv (2.60%) were the notable losers.

Headwater Exploration Inc (4.45%), Endeavour Silver Corp (4.78%), and Energy Fuels Inc (4.82%) were among the prime market-moving stocks today.