Canadian Stocks Extend Surge

Index Update:  Following the rally seen during last Friday's session, Canadian stocks showed another significant move to the upside during trading on Monday. The benchmark S&P/TSX Composite Index moved steadily higher throughout the session before eventually closing up 552.34 points or 1.7 percent at 33,023.32.

Macro Update:  The U.S. dollar index was subdued for the third consecutive session and U.S. Treasury yields fell as investors braced for key U.S. economic data for direction. Ahead of retail sales, inflation and delayed payrolls data due this week, White House economic adviser Kevin Hassett said on Monday that lower U.S. jobs numbers can be expected in the months ahead as the Trump administration's immigration policies slow labor force growth and new AI tools boost productivity. Reports on U.S. retail sales and import and export prices are due later in the day ahead of Wednesday's delayed January employment report and Friday's consumer price inflation report. The U.S jobs report is expected to show employment rose by 70,000 jobs in January after an increase of 50,000 jobs in December. The unemployment rate is seen holding at 4.4 percent.

Top Movers:  The best performers of the session on the S&P/TSX Composite were IAMGold Corporation (TSX:IMG), which rose 10.52% or 2.75 points to trade at 28.89 at the close. Meanwhile, Orla Mining Ltd (TSX:OLA) added 10.45% or 2.23 points to end at 23.56 and Alamos Gold Inc (TSX:AGI) was up 8.40% or 4.61 points to 59.49 in late trade.

Our Stance:  Price action is consolidating around the 33,000 level, a crucial support zone. Sustained holding above this area would help preserve positive sentiment and the broader bullish bias, while a decisive break below 33,000 could weaken near-term momentum and expose the index to a corrective pullback toward the 32,700–32,500 support range.

Commodity Update:  The U.S. dollar extended sharp losses on Tuesday ahead of key economic data expected to influence the interest rate outlook, while the yen held firm after Prime Minister Sanae Takaichi’s decisive election victory. Commodities traded lower, with gold down 0.39% to USD 5,059.25, silver easing 0.73% to USD 81.68, and copper slipping 0.50% to USD 13,146.00. Brent crude declined 0.40% to USD 68.79, though supply concerns lingered amid Strait of Hormuz tensions.

Technical Update:

The S&P/TSX Composite Index posted a strong advance on Monday, climbing 552.34 points (+1.70%) to close at 33,023.32, supported by robust trading volumes that highlight healthy investor participation and reinforce bullish momentum. From a technical standpoint, the index maintains a constructive structure, holding comfortably above its 50-period Simple Moving Average (SMA), which continues to act as key dynamic support for the prevailing uptrend. Momentum indicators remain neutral to positive, with the 14-period RSI at 57.53, signaling steady buying interest without overbought conditions. Price action is consolidating around the 33,000 level, a crucial support zone. Sustained holding above this area would help preserve positive sentiment and the broader bullish bias, while a decisive break below 33,000 could weaken near-term momentum and expose the index to a corrective pullback toward the 32,700–32,500 support range.