Just_Super/iStock via Getty Images
By Garey J. Aitken, CFA & Timothy W. Caulfield, CFA
Falling Yields Spark Canadian Stock Surge
Market Overview
Following a subdued second quarter, the S&P/TSX Composite Total Return Index (‘TRI’) surged 10.5% in Canadian dollars in the third quarter to reach new all-time highs. The third-quarter advance marked the strongest absolute return quarter for Canadian equities since the 17.0% rebound in the second quarter of 2020, immediately following the COVID-related selloff earlier that year. The S&P/TSX Composite TRI has advanced 17.2% year to date and 26.7% over the last 12 months — heady returns for a market posting meek operating earnings growth, albeit with robust market expectations for double-digit earnings growth in 2025. Canadian equities also outperformed the S&P 500 Index’s (SP500, SPX) advance of 4.6% in the third quarter (in Canadian dollars) — the first time the benchmark S&P/TSX…
