04:24 PM EDT, 09/19/2024 (MT Newswires) -- The Toronto Stock Exchange closed at a record high on Thursday as the Federal Reserve's day-prior 50 basis point cut to U.S. interest rates spurred investors' risk appetites.

The S&P/TSX Composite Index closed up 273.67 points to finish 23,866.27, topping the previous record of 23,702.07 set on Sept.16. The biggest gainers on the day were Base Metals and Information Technology, up 3.3% and 2.9% respectively. Decliners on the day were Utilities and Telecoms, down 0.71% and 0.22% respectively.

The financial sub-index rose 1.3% after the Fed cut rated for the first time in four years and indicated another 50 points of cuts will come by year end. This spurred the financial sector, as did the planned departure of Toronto-Dominion' Bank ( MLWIQXX ) (TD.TO, TD) chief executive announced Thursday morning.

TD shares closed up $2.06 to $87.32, after the bank said chief executive Bharat Masrani will step down in April and will be replaced by Raymond Chun, current head of TD's Canadian retail business. Chun will become the bank's chief operating officer on Nov.1 and chief executive on April 10. Masarani's departure comes as the bank faces significant fines from U.S. regulators for some of its business practices there.

The Fed's cuts are seen as supportive for the Bank of Canada's course of interest-rate cuts. The central bank has cut rates by 25 basis points at each of its last three meetings, with more expected.

"Even though the Bank of Canada (BoC) has cut its policy rate three times in a row, the target remains above the neutral rate, which means it's still restrictive. As inflation continues to moderate, we expect to see more rate cuts in Canada. The BoC should even announce a 50 basis-point cut at its next meeting given a more fragile economy. The Federal Reserve also opted for a 50-basis-point cut at its September meeting in response to progress on inflation and risks of further deterioration in the employment market," Desjardin's noted

When it comes to opportunities within the Canadian market, BMO's chief investment strategist, Brian Belski, says there is reason for optimism, albeit cautious optimism, for industrial issues on the TSX.

"While we remain slightly underweight the Industrials sector in Canada, we believe there remains many opportunities within the sector given the breadth of above-market earnings growth and wide valuation dispersion among sector constituents," Belski said.

Overall, despite the breadth of opportunities within the sector, BMO's models continue to suggest "a more cautious positioning is warranted" for the sector in general.

"Our valuation composite remains among the highest in the TSX (the sector is expensive relative to the market and history)," says Belski, as earnings momentum continues to slow in the face of soft economic data (ISM remains below 50). "As such, we remain slightly underweight Industrials heading into year-end."

West Texas Intermediate (WTI) crude oil closed up 1.5% as investors moved to add risk following the U.S. rate cuts as a report showed American oil inventories fell last week while Middle East tensions are on the rise. WTI crude oil for October delivery closed up US$1.04 to US$71.55 per barrel, while November Brent crude, the global benchmark, closed up US$1.23 to US$74.88.

Gold traded at a record late afternoon on Thursday, spurred by lower interest rates which cut the carrying cost of owning the metal. Gold for December delivery was last seen up US$14.20, topping the prior record close of US$2,610.70 touched on Sept.13