(Updated at 10:15 a.m. ET/ 1515 GMT)

By Nikhil Sharma

Nov 7 (Reuters) - Canada's main stock index rose on

Thursday, extending its rally from the previous session, ahead

of the U.S. Federal Reserve's monetary policy decision later in

the day.

The Toronto Stock Exchange's S&P/TSX composite index

was up 95.13 points, or 0.39%, at 24,732.58, its

highest since October 21.

The spotlight was on the U.S. central bank's rate decision

at 2:00 p.m. ET, which is expected to result in a 25-basis-point

cut, with markets also pricing in a similar move in December.

The top bank may have to navigate an uncertain economic

terrain under a second Donald Trump administration, as proposed

tariffs and immigration policies risk stoking inflation and

hamper the path to lower rates.

Canada, the world's No. 4 crude oil producer, is especially

vulnerable due to Trump's proposed 10% tariff on all imports.

Among sectors, the information technology rose

0.9% to lead overall gains, supported by a 10.9% climb in

Lightspeed Commerce ( LSPD ) after the software maker beat

second-quarter profit estimates.

Canadian 10-year benchmark yield fell as much as

6 basis points after a jump in the previous session, pushing

rate-sensitive real estate sector 0.8% higher.

"I think it's still a little overhang from yesterday," Allan

Small, senior investment advisor at Allan Small Financial Group

with iA Private Wealth.

"Overall, everything seems to be hanging in this very

positive vibe in the market right now based on the Fed cutting

rates," and "the new (U.S.) president going to cut taxes

significantly."

Capped communications slid 2.2%, hurt by BCE

and Quebecor ( QBCAF ) falling 4.9% each after posting

quarterly results.

Among other stocks, insurer Manulife Financial ( MFC )

jumped 4.4% to a record high after beating third-quarter profit

estimates.

Across the border, Wall Street's main indexes rose on

Thursday in the run-up to the Fed's decision.

The U.S. weekly jobless claims rose moderately last week,

suggesting no material change in labor market conditions.