Canadian stocks moved lower on Wednesday after the U.S. and Iran turned down

index Update:

After opening below yesterday's close, today the benchmark S&P/TSX Composite Index  traded lower throughout the session before settling at 34,041.43, down by 249.30 points (or 0.73%).

Macro Update:

Through Truth Social, Trump reiterated that all Iranian navy ships have been sunk by the U.S. navy and claimed that Iran has no navy and no air force and the country is on the brink of economic collapse.

Investors are now anticipating Chinese mediation to bring about a reconciliation between the U.S. and Iran since China and Iran are long-term allies and a majority of Iranian oil exports are destined to China.

In a White House briefing, U.S. President JD Vance stated that he believed progress is being made in the U.S.-Iran negotiations without offering further details.

On the domestic front, Canada's Prime Minister Mark Carney is preparing to introduce legislation that will enable federal approval for big projects (from pipelines to transmission lines) quicker and easier.

Top Movers:

Among the individual stocks, Riocan Real Est (2.35%), Granite Real Estate Investment Trust (1.95%), Primaris REIT (1.94%), Aritzia Inc (2.86%), Restaurant Brands International Inc (2.37%), and Goeasy Ltd (5.07%) were the notable losers.

Our Stance:

Momentum remains constructive, with the 14-day Relative Strength Index (RSI) at 55.23, indicating steady bullish strength with room for additional upside. Immediate support is located near 33,900; a break below this level could trigger consolidation toward 33,600. On the upside, a decisive move above 34,200 would strengthen bullish sentiment and could pave the way for further gains toward 34,400.

Commodity Update:  

The U.S. dollar strengthened on Thursday as elevated Treasury yields reinforced expectations that the Federal Reserve could keep interest rates higher for longer, while continued tensions between the United States and Iran supported safe-haven Demand. Gold declined 0.39% to USD 4,688.50, silver dropped 2.10% to USD 87.53, and copper slipped 1.16% to USD 13,978.00. Brent Crude edged up 0.10% to USD 105.68 ahead of the meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

Technical Update:

The S&P/TSX Composite Index fell 249.30 points, or 0.73%, on Wednesday to close at 34,041.43. Despite the decline, the index remains above its 50-day Simple Moving Average (SMA), which continues to act as reliable dynamic support and reinforces the broader positive trend. Momentum remains constructive, with the 14-day Relative Strength Index (RSI) at 55.23, indicating steady bullish strength with room for additional upside. Immediate support is located near 33,900; a break below this level could trigger consolidation toward 33,600. On the upside, a decisive move above 34,200 would strengthen bullish sentiment and could pave the way for further gains toward 34,400.