Stock markets were buoyed Tuesday by the U.S. Federal Reserve’s move to cut interest rates. Financial shares kept markets on an even keel as commodities stocks faltered in afternoon trading.

In Toronto, the S&P/TSX composite index rose 184.55 points, or 1.42%, to end at 13,136.70.

Seven of the 10 major TSX groups gained today.

The financials group gained 4.05% as recently troubled Bank of Montreal managed to regain some of its recent losses, closing up $2.74, or 7%, at $41.89.

CIBC shares also made gains. Its stock closed up $3.81, or 6.69%, to end at $60.75.

Royal Bank of Canada shares closed up $2.21, or 4.99%, to close at $46.53 and TD Bank Financial shares also closed up, gaining $2.70, or 4.48%, to $62.97.

The materials index fell 2.36%, as gold stocks tumbled.

The gold subindex fell 2.36%, as gold for April delivery rose US$1.70, or 0.2%, to end at US$1,002.60 an ounce on the New York Mercantile Exchange, before the Fed rate announcement.

Goldcorp shares sank $2.94, or 6.67%, to close at $41.14, while Kinross Gold Corp. shares dropped $1.77, or 6.83%, to close at $24.15. And Barrick Gold Corp. shares lost $2.91, or 5.58%, to close at $49.28.

The base metals sector fell 0.29%. HudBay Minerals Inc. shares fell 30¢, or $1.79, to close at $16.50, after is announced Q4 profit fell to $28.5 million from $165.8 million.

The heavyweight energy index gained 1.35%, as the April crude contract finished up US$3.74, or 3.5%, at US$109.42 a barrel on the Nymex.

Canadian Oil Sands Trust units fell 39¢, or 0.94%, to close at $41.21, after it announced a cut to its production forecasts due to cold-weather problems at Syncrude.

The junior S&P/TSX Venture composite index closed down 8.47 points, or 0.33%, at 2,556.22.

The Canadian dollar closed out at par with the greenback again today, as Statistics Canada reported inflation hit a six month low in February.

In New York, markets surged more than 400 points in late afternoon trading as the Fed’s rate cut combined with better-than-expected earnings from investment banking giants Lehman Brothers Holdings Inc. and Goldman Sachs Group Inc. soothed anxious investors.

The Dow Jones industrial average soared 420.41 points, or 3.51%, to end at 12,392.66.

The S&P 500 powered ahead 54.14 points, or 4.24%, to close at 1,330.74.

As well, the tech-heavy Nasdaq jumped 91.25 points, or 4.19%, at 2,268.26.