Canadian stocks moved notably higher

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index fluctuated early in the day before closing up 213.91 points or 0.8 percent at a new record closing high of 26,388.96.

Macro Update: Wednesday’s BoC rate decision, with markets leaning toward a hold as April’s inflation data painted a mixed picture, headline CPI slowed to 1.7%, while core inflation accelerated to 2.9%. Although President Trump’s plan to double steel and aluminum tariffs to 50% on Wednesday has introduced some uncertainty, Canada’s diversified trade relationships beyond the US have helped shield the broader market.

Top Movers and Losers: Leading the gains were major mining stocks Agnico Eagle, Wheaton Precious, Barrick Gold, and Franco-Nevada, all surging over 5%.

Our Stance: From a technical perspective, the index remains firmly in a bullish trend, trading well above its 50-period Simple Moving Average (SMA). The index is currently testing a key support zone near 26,100. Sustaining this level will be critical to maintaining upward momentum. A decisive break down below this threshold could open the door to a pullback, with next support levels seen at 25,900 and 25,600.

Commodity Update: The dollar dropped to a six-week low Tuesday amid concerns over U.S. economic weakness tied to the ongoing trade war. Steel and aluminum tariffs will double to 50% Wednesday, the same day trade deal offers are due. Gold slipped 0.16% to $3,391.90, silver fell 1.30% to $34.24, and copper dipped 0.20% to $9,576.15. Brent crude rose 0.85% to $65.18 on supply fears linked to Iran and Canadian wildfires.

Technical Update: The S&P/TSX Composite Index posted a solid performance on Monday, advancing 213.91 points or 0.82% to close at 26,388.96. The rally was underpinned by strong investor sentiment and robust trading volumes, with the energy sector leading the gains, rising 1.86%. From a technical perspective, the index remains firmly in a bullish trend, trading well above its 50-period Simple Moving Average (SMA). This positioning reinforces the underlying strength of the current uptrend. The Relative Strength Index (RSI) stands at 71.89, reflecting healthy momentum but also indicating that the market is nearing overbought territory—a signal that may prompt near-term caution. The index is currently testing a key support zone near 26,100. Sustaining this level will be critical to maintaining upward momentum. A decisive break down below this threshold could open the door to a pullback, with next support levels seen at 25,900 and 25,600.