Canadian Stocks Rally as U.S. Election Results Lift Investor Sentiment

ndex Update:

Canadian stocks surged on Wednesday, recovering the previous session’s losses as investors welcomed a decisive Democratic victory in the U.S. midterm elections. The shift in Congress fuelled expectations of stronger opposition to the administration’s Tariff policies and efforts to prolong the conflict with Iran. The benchmark S&P/TSX Composite index traded positive throughout the session before settling at 36,341.40, up by 809.12 points (or 2.28%).

Macro Update:

China’s Trade Surplus widened to $133.53 billion in September 2026, up from $88.72 billion a year earlier, surpassing forecasts of $118.1 billion, and marking the 2nd largest surplus after $137.9 billion record hit in January 2025.

The Canadian dollar strengthened sharply to 1.39 per USD in November, reaching a more than two-month high as the greenback retreated broadly following Democratic victories in the US midterm elections.

The Yield on Canada 10Y Bond Yield eased to 3.70% on November 4, 2026, marking a 0.08 percentage points decrease from the previous session.

Top Movers:

The best performers of the session on the S&P/TSX Composite were Discovery Mining Ltd (TSX:DSV), which rose 14.97% or 1.44 points to trade at 11.06 at the close. Meanwhile, Americas Gold and Silver Corporation (TSX:USA) added 13.46% or 0.51 points to end at 4.30 and Equinox Gold Corp (TSX:EQX) was up 12.54% or 1.76 points to 15.79 in late trade.

Our Stance:

From a technical perspective, Immediate support is placed near 36,000, which remains critical for sustaining the ongoing recovery. A continued hold above this level could reinforce bullish sentiment and support further upside towards the recent high of 36,750. Conversely, a decisive break below 36,000 could undermine the positive technical structure and trigger renewed selling pressure.

Commodity Update:

The US dollar retreated on Thursday but recovered from earlier lows after Democrats secured a sweeping victory in the US midterm elections, reducing political uncertainty as markets assessed potential regulatory changes. Gold gained 1.77% to USD 4,145.70, while silver advanced 1.00% to USD 53.22. Copper edged up 0.06% to USD 14,086.00. Meanwhile, Brent Crude oil declined 0.56% to USD 94.10 as investors assessed whether the election outcome could increase pressure on President Donald Trump to end the war with Iran

Technical Update:

The S&P/TSX Composite Index advanced 2.28% on Wednesday to close at 36,341.40, indicating strong buying interest and improving market sentiment. From a technical perspective, the index maintains a constructive outlook, trading above its 21-day Simple Moving Average (SMA), which continues to act as a key dynamic support level. The 14-day Relative Strength Index (RSI) stands at 56.00, signaling strengthening positive momentum. Immediate support is placed near 36,000, which remains critical for sustaining the ongoing recovery. A continued hold above this level could reinforce bullish sentiment and support further upside towards the recent high of 36,750. Conversely, a decisive break below 36,000 could undermine the positive technical structure and trigger renewed selling pressure.