04:20 PM EST, 11/05/2025 (MT Newswires) -- The Toronto Stock Exchange on Wednesday recovered much of the near 500 points lost in the prior session as market focus switched from yesterday's federal budget event, to now also being on U.S. Supreme Court hearings on tariffs implemented by the Trump administration.

The resources-heavy S&P/TSX Composite Index closed up 325.66 points, or 1.1%. at 30,103.48. Most sectors were higher, with Energy and Base Metals prominent, both rising more than 2%. Info Tech gained near 3%.

While Tuesday's fiscal update on the Canadian economy did, as feared, include a deficit that is billions of dollars higher than forecast a year earlier, it also delivered a plan for major infrastructure and industrial investments to drive economic growth and make the nation more self sufficient. Market watchers are still digesting the details around the related documentation, trying to calculate if the federal government's new strategy will be passed in Parliament, and if it can be a winning one.

The Liberal minority government needs two more votes from opposition parties to pass its budget, even after Nova Scotia MP Chris d'Entremont, just before the publication of the fiscal update, moved across the aisle to the Liberal caucus from the main opposition Conservatives. CBC News is reporting on other rumors' about possible defections.

Wednesday afternoon The Conference Board of Canada published its analysis of the budget, in which it said: "Canada's 2025 budget signals a shift from program spending to long-term investments, with a focus on boosting private investment and securing the country's economic potential."

It added: "While middle-class tax cuts aim to ease affordability, most measures won't put extra cash in Canadians' pockets. Ottawa is betting on deficit-financed growth to jumpstart investment. But will this strategy pay off over the next five years?"

Meantime, President Trump's global tariffs "appeared to be on shaky ground" after Supreme Court justices expressed skepticism during a hearing on Wednesday about his authority to impose sweeping measures on countries around the world, The Wall Street Journal is reporting Wednesday.

The WSJ noted the Trump administration's top lawyer faced sharp questioning during arguments in one of the most consequential economic and political cases to come before the court in decades. It noted lawyers representing the tariff challengers were also pressed by some justices on what kind of limitations courts could impose on core presidential powers.

The nine justices are weighing whether the president lawfully invoked his authority under the International Emergency Economic Powers Act to levy the global tariffs without Congress's approval, as well as a set of tariffs on Canada, China and Mexico related to fentanyl, the WSJ noted.

In looking at what's at stake, The WSJ said if the court overturns the tariffs, the Trump administration has warned it will need to repay tens of billions of dollars it has already collected. It will also undercut a core legal justification for a large chunk of Trump's tariffs and potentially remove leverage in trade talks.

The report said while a decision isn't expected immediately, questioning during the hearing suggested that the tariffs may not survive the challenge, which would force the Trump administration to rely on other authorities to deploy levies on a similar scale.

Of commodities, gold traded higher late afternoon on Wednesday, even with the dollar continuing to strengthen, as the metal continues to trade within a tight range. Gold for December delivery was up US$34.70 to $3,995.20 per ounce.

But West Texas Intermediate crude oil closed lower for a second session as a report showed an unexpected surge in U.S. oil inventories, keeping over-supply concerns top of mind for traders. WTI crude oil for December delivery closed down $0.96 to settle at US$59.60 per barrel, while January Brent was down $0.88 to $63.56.