• TSX ends up 0.99% at 28,333.13
• Surpasses Thursday's record closing high
• Technology sector gains 2.59%
• Energy adds 2.33%, with Cenovus up 7.13%

TORONTO, Aug 22 (Reuters) - Canada's major stock index rallied to another record high on Friday as investors sought to increase their ownership of shares in high-growth sectors like technology after Federal Reserve Chair Jerome Powell opened the door to interest rate cuts.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 277.70 points, or 0.99%, at 28,333.13, surpassing the record closing high it posted on Thursday. For the week, the index was up 1.53%, its third straight weekly gain.

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Powell pointed to a possible interest rate cut at the U.S. central bank's meeting next month, telling the Fed's annual Jackson Hole conference that risks to the job market were rising but also noting the continued threat of inflation and that a decision wasn't set in stone.

"The market has been waiting for a solid signal from the Fed on this for a while now," said Philip Petursson, chief investment strategist at IG Wealth Management. "Today, clearly it got it and it's responding in kind."

The TSX has advanced 14.58% since the start of the year, helped by a heavy weighting in the shares of gold mining companies. Safe-haven gold has benefited from economic uncertainty triggered by the global trade war.

Canada will remove many retaliatory import tariffs on U.S. goods and intensify talks with the United States on striking a new trade and security relationship, Prime Minister Mark Carney said.

Investors are rotating out of defensive sectors into the "growthier areas" such as energy, materials and technology, Petursson said.

The technology sector (.SPTTTK) , opens new tab was up 2.59%, helped by a gain of 3.38% for the shares of e-commerce company Shopify Inc (SHOP.TO) , opens new tab.

Energy (.SPTTEN) , opens new tab climbed 2.33% as the price of oil settled 0.22% higher at $63.66 a barrel.

Cenovus Energy (CVE.TO) , opens new tab announced it will acquire MEG Energy (MEG.TO) , opens new tab in a C$7.9 billion ($5.68 billion) cash-and-stock deal, ending weeks of speculation that it would emerge as a white knight for MEG, which is facing a hostile takeover attempt. Shares of Cenovus jumped 7.13%, while MEG's shares ended 1.23% higher.

The materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, added 1.38%.

https://www.reuters.com/markets/europe/tsx-hits-record-high-feds-powell-delivers-potential-rate-cut-signal-2025-08-22/