Canada's main stock index, the S&P/TSX composite index, reached an all-time high of 23,623.63 points, buoyed by gains in healthcare, financials, and energy sectors.

What does this mean?

The healthcare sector led the charge with a nearly 1% rise, while the financials and energy sectors climbed 0.4% and 0.35%, respectively. Shares of Bausch Health Companies surged 6.7% after reports that its unit, Bausch + Lomb, is exploring sale options. Meanwhile, the odds of a 50-basis-point interest rate cut by the US Federal Reserve surged to 63%, up from 30% last week, according to CME's FedWatch tool. Such a cut could boost the resource-heavy Canadian market, as noted by an advisor from Allan Small Financial Group. Additionally, Canadian factory sales rose by 1.4% in June, driven by higher sales of petroleum, coal, and chemical products. West Texas Intermediate crude futures rose 2.51%, and Brent crude gained 1.98%.

The TSX's climb indicates widespread sector confidence, particularly in healthcare and energy. Investors should keep an eye on policy shifts from central banks, as potential interest rate cuts could further fuel market activity and resource-heavy stocks.

The bigger picture: Global economic influences at play.

The anticipated rate cut by the US Federal Reserve underscores the broader macroeconomic environment influencing Canada's market. Coupled with the Bank of Canada's recent rate reductions, these moves align with efforts to stabilize economic growth. Investors should consider these dynamics when assessing future market conditions.