Canadian stocks set record for records in ‘jaw-dropping’ year

It makes little sense, when viewed from early April, that Canadian equities are closing out their second-best year this century. 

Donald Trump had just unleashed the harshest tariffs since The Depression, effectively choking off trade and tearing up a trade agreement he had negotiated. The US president was also openly discussing annexing Canada, stoking unfathomable tensions between the two long-time allies. Political turmoil added to unease up North.

Then Trump backed down from his most punishing tariffs. Technocrat Mark Carney took over as prime minister, easing financial market jitters and cooling tensions with his US counterpart. And, it turned out, Canada’s economy — driven by miners and internationally renowned financial firms —  was perfectly situated for the chaos of Trump’s new world order.

The S&P/TSX soared more than 40% from an April 8 low, putting the gauge on track to end 2025 with a 29% advance, trailing only 2009’s 31% gain for the best ever. The index notched a record 63 new all-time highs along the way, owing to a steady march higher over the year’s final seven months.

Miner and bank stocks have been central to the rally, with the materials subindex doubling on the back of rallies in gold, silver, copper and palladium. The financials group jumped 40%. Tech darlings like Shopify Inc. and Celestica Inc. have also contributed, moving the index by a ...