TSX Rises Despite Fed Hike Odds as Oil Prices Drop

Canada's TSX Composite index staged a comeback on Friday, rising 0.6% to 35,719.38, despite heightened expectations of a Federal Reserve rate hike next week.

The unexpected support came from the energy sector, which fell 2.5% after reports emerged that Middle East officials are discussing a deal with Iran to restore shipping through the Strait of Hormuz.

This development eased supply worries and cooled inflation fears, leading investors to view the decline in oil prices as 'inflation relief' rather than 'demand trouble', even with US data showing price increases in August.

As a result, tech stocks led the way, with Shopify gaining 3.6%, while materials also contributed to the index's rise due to gold and silver rebounding.