12:22 PM EDT, 09/19/2024 (MT Newswires) -- The Toronto Stock Exchange was trading at a record high midday, surging along with U.S. markets as the Federal Reserve's first interest-rate cut in four years whetted investors appetite for risk.

The S&P/TSX Composite Index was up 249.65 points at noon Eastern time to 23,842.25, topping the Sept.16 record close of 23,702.07.

The Financial sub-index was up 1.1% after the Federal Reserve on Wednesday cut its benchmark interest rate by 50 basis points and indicated another 50 points of cuts will come by year end. The cuts spurred the financial sector, as did the planned departure of Toronto-Dominion' Bank ( MLWIQXX ) (TD.TO, TD) chief executive announced earlier Thursday.

TD shares were last seen up $1.82, or 2.1%, to $87.08 after the bank said chief executive Bharat Masrani will step down in April and will be replaced by Raymond Chun, current head of TD's Canadian retail business. Chun will become the bank's chief operating officer on Nov.1 and chief executive on April 10. Masarani's departure comes as the bank faces significant fines from U.S. regulators for some of its business practices there.

The 50 point cut from the Fed is also seen as supportive for the Bank of Canada's course of interest-rate cuts. The central bank has cut rated by 25 basis points at each of its last three meetings.

"Even though the Bank of Canada (BoC) has cut its policy rate three times in a row, the target remains above the neutral rate, which means it's still restrictive. As inflation continues to moderate, we expect to see more rate cuts in Canada. The BoC should even announce a 50 basis-point cut at its next meeting given a more fragile economy. The Federal Reserve also opted for a 50-basis-point cut at its September meeting in response to progress on inflation and risks of further deterioration in the employment market