Canadian stocks Close Moderately Higher on Wednesday.

Image Source : Krish Capital Pty Ltd

Index Update:

The S&P/TSX Composite Index edged 0.75% to 25,161.18 on Wednesday, a one-month high. Markets were buoyed by a de-escalation in global trade tensions and a more accommodative stance from the US Federal Reserve, which signaled a potential pause or slowdown in rate hikes. This supportive policy backdrop helped fuel investor optimism, particularly benefiting interest rate-sensitive sectors like financial and growth-oriented industries such as technology.

Macro Update:

Investor sentiment received an additional boost following Prime Minister Mark Carney’s first meeting with U.S. President Donald Trump at the White House on Tuesday, which both leaders described as constructive, though no concrete trade shifts were announced.

Hopes of de-escalation were reinforced by plans for U.S. and Chinese officials to meet in Switzerland this weekend—an encouraging sign for Canada’s trade-exposed economy.

Meanwhile, the Fed held rates steady and maintained its balance sheet runoff, though it flagged rising economic uncertainty amid ongoing trade frictions.

Top Movers and Losers:

The biggest gainers of the session on the S&P/TSX Composite were Premium Brands Holdings Corporation (TSX: PBH), which rose 9.45%. Spin Master Corp (TSX: TOY) added 6.71% and Stella-Jones Inc. (TSX: SJ) was up 4.73%. Biggest losers included NovaGold Resources Inc (TSX: NG), which fell 6.72%. IAMGold Corporation (TSX: IMG) declined 5.70% and Ivanhoe Mines Ltd. (TSX: IVN) down 5.67%.

Our Stance:

The index is trading comfortably above its 21-period Simple Moving Average (SMA), reinforcing a bullish short-term outlook and suggesting potential support at that moving average. The Relative Strength Index (RSI) stands at 56.84, indicating a healthy momentum without entering overbought territory—leaving room for further upside. Key support is currently found near the 24,800 level. Holding above this threshold is crucial to maintaining the current bullish trajectory.

Commodity Update:

On Thursday, the U.S. dollar held steady against the euro after its biggest two-week gain, supported by easing U.S.-China trade tensions and Fed warnings about rising inflation and unemployment risks. Investors await a key meeting in Switzerland. Gold rose 0.47% to $3,407.70, silver gained 0.60% to $32.95, and copper climbed 0.41% to $9,462.80. Brent crude remained flat at $61.12 after a sharp drop in the previous session.

Technical Update:

The S&P/TSX Composite Index closed significantly higher on Wednesday, climbing 185.45 points, or 0.75%, to settle at 25,161.18. The advance was supported by strong trading volume, highlighting increased investor confidence and broad-based buying interest. Leading the rally was the technology sector, which rose 1.46%, underscoring growing optimism in growth-oriented industries. From a technical standpoint, the index is trading comfortably above its 21-period Simple Moving Average (SMA), reinforcing a bullish short-term outlook and suggesting potential support at that moving average. The Relative Strength Index (RSI) stands at 56.84, indicating a healthy momentum without entering overbought territory—leaving room for further upside. Key support is currently found near the 24,800 level. Holding above this threshold is crucial to maintaining the current bullish trajectory. A decisive break below could trigger a retracement toward lower support zones around 24,500 and 24,250, as identified on the weekly chart. Overall, as long as the index remains above these key levels, the technical setup favors continued strength.