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TSX closes up 0.9% at 21,552.35

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Posts highest closing level since April 2022

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Energy rallies 2%; oil settles up 2.2%

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Uranium producers rally; NexGen Energy ( NXE ) up 9.5%

(Updates at market close)

By Fergal Smith

March 1 (Reuters) - Canada's main stock index climbed toa near two-year high on Friday, led by gains for resource andtechnology shares, as investors grew more optimistic aboutprospects for Federal Reserve interest rate cuts over the comingmonths.

The Toronto Stock Exchange's S&P/TSX composite indexended up 188.74 points, or 0.9%, at 21,552.35, itshighest closing level since April 2022. For the week, the indexwas up 0.7%.

"We are back on that roller coaster ride of interest rateexpectations driving the market," said Philip Petursson, chiefinvestment strategist at IG Wealth Management. "Today, some ofthe softer data out of the United States rekindled the fire ofexpectation for the Fed cut being sooner rather than later."

U.S. manufacturing slumped further in February, with ameasure of factory employment falling to a seven-month low amidlayoffs, but there were signs activity was on the cusp ofrebounding.

Higher commodity prices boosted resource shares, with goldrising 2%, copper up 0.5% and oil settling 2.2%higher at $79.97 a barrel.

"With the expectations of the Fed cutting interest rates,that's putting a little bit of downward pressure on the U.S.dollar and you get the inverse relationship of higher commodityprices," Petursson said.

The energy sector and materials, which includes whichincludes precious and base metals miners and fertilizercompanies, both added 2%.

Uranium producers contributed to the rally, with NexGenEnergy Ltd ( NXE ) up 9.5% and Cameco Corp ( CCJ ) advancing3.5%, after Reuters reported on Thursday that Canada willexpedite the approval process for new nuclear projects.

The information technology sector also posted strong gains,climbing 1.5% and industrials were up 0.7%.

Shares of SNC-Lavalin Group Inc ( SNCAF ) jumped 11.4% afterthe construction and engineering company reported fourth-quarterresults that beat estimates.