Canadian stocks extended the losses

index Update:  After opening a little lower than yesterday's close, today the benchmark index-txcx">S&P/TSX Composite index gained a little but lost momentum and traded lower throughout the rest of the session before settling at 33,584.34, down by 233.85 points (or 0.69%).

Macro Update:  On the domestic front, on April 21, Canada's Prime Minister Mark Carney formed a new Advisory Committee on Canada-U.S. Economic Relations that included leaders from major sectors of the Canadian economy.

Today, the Minister for Canada-U.S. Trade Dominic LeBlanc chaired the inaugural meeting of the new Advisory Committee. The discussion was aimed at building a strong, stable, and mutually beneficial economic Partnership between Canada and the U.S.

The Canada-United States-Mexico Agreement, which came into force on July 1, 2020 with a life span of 16 years, is coming up for review on its sixth anniversary, which is July 1, 2026.

In the U.S., a report by Wall Street Journal indicated that OpenAI missed its goals for new users and Revenue in recent months, restarting the debate on the logic behind huge investments made in AI. As a result, AI-related stocks faced Volatility and IT sector stocks in Canada felt the heat.

Top Movers:  Among the individual stocks, Baytex Energy Corp (4.95%), Tfi International Inc (4.92%), Vermilion Energy Inc (4.07%), Tamarack Valley Energy Ltd (3.47%), and Chartwell Retirement Residences (2.59%) were the prominent gainers.

Our Stance:  Momentum remains relatively stable, with the 14-period RSI near 51.06, suggesting balanced conditions with gradual upside scope. However, the broader trend indicates consolidation, as the index lacks a strong breakout trigger

Commodity Update:  The dollar firmed on Tuesday as investors assessed a deadlock in U.S.–Iran talks alongside key Central Bank rate decisions this week. Gold slipped 0.04% to 4606.60, while silver rose 0.61% to 73.66 and copper gained 0.71% to 13124.70. Brent Crude fell 0.60% to 110.65 as markets weighed the United Arab Emirates’ exit from the OPEC producer group, though persistent geopolitical tensions and the Strait of Hormuz closure limited deeper losses.

Technical Update:

On Tuesday, the S&P/TSX Composite index declined by 233.85 points (0.69%) to close at 33,584.34, reflecting a mildly negative tone rather than outright weakness. From a technical perspective, the index continues to trade above its 50-period Simple Moving Average (SMA), which is acting as dynamic support and helping maintain a constructive near-term bias. Momentum remains relatively stable, with the 14-period RSI near 51.06, suggesting balanced conditions with gradual upside scope. However, the broader trend indicates consolidation, as the index lacks a strong breakout trigger. Immediate support is seen near 33,500; a sustained break below this level could weaken sentiment and open the door for a deeper pullback toward the 33,200 zone.