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Index Update: The benchmark S&P/TSX Composite Index ended with a loss of 27.03 points or 0.11% at 25,631.83. The index, which dropped to 25,480.33 early on in the session, climbed to 25,672.90 and then stayed in a tight band.
Macro Update: Powell noted interest rates have been lowered by a full percentage point since last September, describing the Fed's current policy stance as "significantly less restrictive than it had been.
A statement from the White House said Trump is reinstating a 25 percent tariff on steel imports and increasing tariffs on aluminum imports to 25 percent.
Top Movers: orex Gold Resources, Advantage Oil & Gas, Cenovus Energy, Air Canada, PrairieSky Royalty, MEG Energy, Vermilion Energy, BCE Inc., Stella Jones, and Keyera Corp gained 1.3 to 2.4%.
Our Stance: Technically, there are signs of weakening momentum, raising concerns about potential further declines. Looking ahead, the key support level to monitor is 25,300, where the index aligns with a horizontal trendline. Holding above this level could pave the way for a potential rebound, while a break below it may lead to stronger downside tests between 25,300 and 25,100.
Commodity Update: On Wednesday, the dollar retreated from its tariff-driven rally, dropping below recent highs as traders awaited U.S. inflation data and updates on the trade front. Federal Reserve Chair Jerome Powell maintained that the Fed was not in a rush to cut interest rates during his testimony to Congress. Commodities had mixed performances: gold fell by 0.51% to $2917.40, silver slipped 0.11% to $32.28, while copper rose 0.14% to $9,374.70. Brent oil dropped 0.47% to $76.64, impacted by a rise in U.S. crude stockpiles and ongoing tariff concerns. Investors are focusing on the upcoming CPI report for insights into future rate decisions.
Technical Update: On Tuesday, the S&P/TSX Composite Index declined by 27.03 points, or 0.11%, to close at 25,631.83. The healthcare sector led the downturn, falling 1.13%, contributing to the overall bearish sentiment. Despite the drop, the index remains above its 50-period Simple Moving Average (SMA), indicating that the short-term uptrend is still intact. However, with the Relative Strength Index (RSI) at 58.55, there are signs of weakening momentum, raising concerns about potential further declines. Looking ahead, the key support level to monitor is 25,300, where the index aligns with a horizontal trendline. Holding above this level could pave the way for a potential rebound, while a break below it may lead to stronger downside tests between 25,300 and 25,100. A move below these levels could indicate deeper corrections and a shift in market sentiment. Investors should closely watch these support levels as they will be critical in shaping the index’s short-term direction.