TSX gains 0.8 percent as tech and mining sectors lead

The S&P/TSX composite index rose on Tuesday as the technology and materials sectors led the market's advance. Investors are currently focused on upcoming central bank policy decisions in Canada and the United States as geopolitical tensions in the Middle East continue to impact global sentiment.

At 11:05 a.m. ET, the benchmark index was up 0.8% at 33,126.84 points, following its largest one-day jump since late February. The materials sector climbed 1.4%, supported by higher prices for precious metal miners such as Barrick Gold Corporation. Technology stocks also saw gains, rising 2% during the session.

Energy stocks increased 1.1%, marking their fifth consecutive session of growth. This rally follows a spike in oil prices of up to 4% earlier in the day, driven by supply concerns after attacks on energy infrastructure and shipping disruptions in the Strait of Hormuz. While these price increases have reignited global inflation worries, Canada is considered relatively insulated as a net oil exporter.

Michael Hanson, executive director and senior global economist at J.P. Morgan, provided insight into the potential policy stance of the Bank of Canada.

We would not expect the Governing Council to signal a material risk for shifting to a tighter policy stance unless there were signs that inflation expectations were rising uncomfortably.

The U.S. Federal Reserve is scheduled to begin its two-day policy meeting today, with markets widely expecting interest rates to remain unchanged. Similarly, the Bank of Canada is expected to hold rates steady on Wednesday. Investors will be looking for clues on the timing of future rate cuts as energy-driven inflation risks and labor market conditions weigh on the outlook. Hanson noted that labor market weakness and shifting trade policies could eventually create room for some monetary easing.