Following three days of steep losses, the benchmark index of the Toronto Stock Exchange rallied Thursday on promising economic data and a boost in energy and materials stocks.

The S&P/TSX composite index gained 120.47 points, or 1.3%, to close at 9,773.92.

The energy group soared 2.6% on Thursday despite a decline in oil futures for a seventh consecutive session. Crude for August delivery slipped 21¢, or 0.4% to $59.53 a barrel on the New York Mercantile Exchange.

Shares of Suncor Energy Inc. increased 2.8% to $31.30 and Canadian Natural Resources Ltd. jumped 2.4% to $54.95.

EnCana Corp.’s stock rose $1.07, or 2.1%, to $53.24.

Petro-Canada saw its stock surge to $39.87, up $1.30, or 3.4%.

Meanwhile, the materials group gained 1.9% on Thursday as gold futures advanced. Gold for August delivery rose US$6.90, or 0.8%, to end at US$916.20 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index gained 0.8%.

Shares of First Quantum Minerals Ltd. soared $2.97, or 6%, to $52.71.

Potash Corp.’s stock rose 3.3% to $108.80 and Agrium Inc. gained 3% to close at $44.17.

Shares of Ivanhoe Mines Ltd. jumped 4.2% after news that Mongolia’s national parliament had voted in favour of advancing approval discussions on the Oyu Tolgoi copper-gold project in the South Gobi Region. The company’s stock added 38¢ to close at $9.35.

The financials group edged up 0.6% during Thursday’s trading.

Gainers included Manulife Financial Corp., up 1.6% to $19.52, and IGM Financial Inc., up 2% to $39.46.

Shares of Canadian Western Bank jumped 4.7% to $15.57.

Closing lower for the day was Intact Financial, down 1.9% to $34.00.

Junior stocks also rose on Thursday, sending the S&P/TSX Venture composite index up 8.8 points, or 0.9%, to end at 1,042.82.

The Canadian dollar advanced by nearly half a cent to close at US86.04¢.

U.S. stock markets finished with modest gains on Thursday, helped by strength in energy stocks.

The Dow Jones industrial average gained 4.76 points, or less than 0.1%, to close at 8,183.17.

The S&P 500 index added 3.12 points, or 0.4%, to finish at 882.68.

The Nasdaq composite index rose 5.38 points, or 0.3%, to end at 1,752.55.