CANADA STOCKS-TSX hits over two-week high ahead of Fed's rate decision

(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. (Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore)