Canadian stocks climbed to a new record high on Friday

Image Source : Krish Capital Pty Ltd

Index Update:  Canadian stocks surged on Friday as US Federal Reserve Chair Jerome Powell seemingly hinted at a September rate cut in his speech today at the Jackson Hole Economic Symposium in Wyoming. After opening higher than yesterday's close, the benchmark S&P/TSX Composite Index saw further upside in early trading and remained firmly positive throughout the session before closing at 28,333.13, up by 277.70 points (or 0.99%)

Macro Update:  In a significant development, while delivering a speech at the Jackson Hole Economic Symposium today, Powell indicated that a potential rate cut could occur during September's central bank meeting, although he refrained from making a definitive commitment. On the trade front, Canadian high-level officials are engaged in talks with their US counterparts to seek a level playing field without denting common interests. Data released by Statistics Canada today revealed that for the month of June, retail sales in Canada advanced by 6.6% year-on-year and retail sales (excluding vehicles) jumped by 1.9% month-over-month.

Top Movers:  Among the individual stocks, Lightspeed Commerce Inc (3.93%), Celestica Inc (3.62%), Shopify Inc (3.38%), Cenovus Energy (7.13%), and Baytex Energy Corp (4.98%) were the prominent gainers. Energy Fuels Inc (12.02%) and Nexgen Energy Ltd (7.34%) were among the other prime market-moving stocks.

Our Stance:  The index is currently testing a key support zone near 28,100; holding above this level is crucial to sustain the ongoing uptrend. A decisive break below could prompt a retracement, with the next supports placed at 27,800 and 27,600 on the daily chart.

Commodity Update:  The U.S. dollar attempted to recover on Monday after sliding to a four-week low against the euro, as dovish signals from the Federal Reserve spurred broad selling last week. Gold eased 0.27% to $3,409.15 and silver slipped 0.58% to $38.83, while copper edged up 0.36% to $9,780.30. Brent crude rose 0.16% to $67.33, supported by lingering geopolitical concerns and Fed-driven rate-cut expectations.

Technical Update:

On Friday, the S&P/TSX Composite Index gained 277.70 points to close at 28,333.13, up 0.99%, supported by strong trading volumes that signaled continued investor confidence. The technology sector led the advance with a 2.18% rise, reflecting renewed optimism in space. From a technical perspective, the index maintains a bullish structure, trading well above its 21-period Simple Moving Average (SMA). The Relative Strength Index (RSI) stands at 71.58, indicating robust momentum with scope for further upside. The index is currently testing a key support zone near 28,100; holding above this level is crucial to sustain the ongoing uptrend. A decisive break below could prompt a retracement, with the next supports placed at 27,800 and 27,600 on the daily chart.