Canadian stocks moved sharply higher

Index Update: The S&P/TSX Composite Index climbed firmly into positive territory as the day progressed before ending the session up by 374.63 points or 1.1 percent at a new record closing high of 34,501.96.

Macro Update: On the U.S. economic front, a report released by the Labor Department showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended February 21st. The Labor Department said initial jobless claims rose to 212,000, an increase of 4,000 from the previous week's revised level of 208,000. Economists had expected jobless claims to climb to 215,000 from the 206,000 originally reported for the previous week.

Top Movers:  The financial sector led the charge after National Bank of Canada soared 6.6% and Bank of Montreal surged 3.8% following Q1 profit beats. These gains, alongside a 2.5% rise in CIBC and 2% in TD, comfortably offset a 5.5% slump in Loblaw and a 2.2% drop in Canadian National Railway. Tech shares remained a significant tailwind, with Shopify rising 2.6% and Thomson Reuters jumping 10.1% amid broader optimism ahead of major US software earnings. While commodity-linked stocks saw mixed results, Barrick Gold and Canadian Natural Resources both eased slightly, the strength in Bay Street’s heavyweights ensured a record-breaking session.

Our Stance: Momentum indicators are constructive, with the 14-period RSI at 68.68, reflecting solid buying pressure while remaining below overbought territory, indicating potential room for further upside. Immediate support is seen near 34,400; maintaining levels above this zone would preserve the bullish structure, while a decisive break may open the door toward the 34,100–33,900 support region.

Commodity Update:  China’s central bank acted to moderate the yuan’s recent strength by removing foreign exchange risk reserves on select forward contracts, a step that may support dollar demand. Gold edged up 0.10% to USD 5,199.60, while silver climbed 3.24% to USD 89.78 and copper gained 0.36% to USD 13,347.30. Brent crude slipped 0.40% to USD 70.48 amid extended U.S.–Iran nuclear talks and rising Venezuelan oil sales. 

Technical Update:

On Thursday, the S&P/TSX Composite Index advanced 374.63 points, or 1.10%, to close at 34,501.96, supported by steady trading volumes that signal sustained investor participation and healthy market breadth. The broad-based strength suggests continued confidence across key sectors. From a technical standpoint, the index remains firmly above its 50-period Simple Moving Average, reinforcing the durability of the prevailing short-term uptrend. Momentum indicators are constructive, with the 14-period RSI at 68.68, reflecting solid buying pressure while remaining below overbought territory, indicating potential room for further upside. Immediate support is seen near 34,400; maintaining levels above this zone would preserve the bullish structure, while a decisive break may open the door toward the 34,100–33,900 support region.