The TSX has rallied nearly 27 per cent since plunging to a three-year low in January. It rose 0.5 per cent this week.
"We saw some rotation out of the gold complex that is going directly back into the energy complex and some money that was also still looking for yield is staying within the financials," said Sid Mokhtari, director, institutional equity research, CIBC World Markets.
Data showed that U.S. employment growth increased more than expected in July and wages picked up, which bolstered expectations of an acceleration in economic growth in Canada's largest trading partner and raised the probability of a Federal Reserve interest rate hike this year.
Reduced fear, since the most recent Fed announcement, that U.S. rates will turn negative has been supportive of financial stocks and the overall market, Mokhtari said.
The heavily weighed financials group rose 1.1 per cent, including a 1.4 per cent gain for Toronto-Dominion Bank TD.TO to $56.88.
Energy stocks advanced 1.4 per cent as losses for oil were pared. U.S. crude oil futures CLc1 settled 13 cents lower at $41.80 a barrel after a near 6 per cent rally over the previous two sessions.
Industrials advanced 1.4 per cent, led by gains for railroad stocks and for Magna International Inc MG.TO. Shares of the car parts maker jumped 5.4 per cent to $52.57 after its profit topped expectations and it raised its earnings forecast.
However, plane and train maker Bombardier Inc BBDb.TO fell 0.5 per cent to $1.98 after reporting a slightly bigger-than-expected quarterly loss.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 119.99 points, or 0.83 per cent, at 14,648.77. It touched its highest since July 17, 2015 at 14,651.43.
Nine of the index's 10 main groups ended higher.
The materials group, which includes precious and base metals miners and fertilizer companies, was the lone sector to fall. It lost 1.1 per cent as gold prices fell after the U.S. data. [GOL/]
Barrick Gold Corp ABX.TO slumped nearly 4 per cent to $27.97, while Goldcorp Inc G.TO was down 2.3 per cent at $22.98.
Sierra Wireless Inc SW.TO tumbled 18.2 per cent to $18.33 as a string of analysts cut their price targets on the stock after the company lowered its full-year outlook.
The strong U.S. jobs data overshadowed dismal Canadian trade and employment numbers.
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