After a sluggish second quarter, the Canadian stock market rebounded strongly in the third, driven in part by a series of rate cuts from the Bank of Canada. Lowering interest rates helped to cool inflation and supported a broader economic recovery, positioning the market for a more optimistic outlook for the remainder of the year and beyond.
For the three months ending Sept. 30, the Morningstar Canada Index returned a healthy 11.58%, building on a modest 1.31% gain for the second quarter. The S&P/TSX composite index saw a 9.3% rise in the quarter, boosted by solid gains for real estate, financial, and technology stocks.
What Contributed to the Rebound?
The Bank of Canada reducing interest rates by 75 basis points so far in 2024, along with the further cuts that are expected, have served to reignite the real estate market, lifting both it and financial services stocks. The trend is evidenced by a sharp rebound in the Morningstar…
