Canadian Stocks Scale New Record Highs

Image Source : Krish Capital Pty Ltd

Index Update:  Canadian stocks scaled a new peak on Wednesday as investors cheered stronger-than-expected earnings from banking stocks with stellar RBC results in focus. After opening a little higher than yesterday's close, the benchmark S&P/TSX Composite Index moved up to trade firmly positive throughout the session while reaching an intraday high of 28,468.34 - a new record - less than half-hour before the close of session. The index finally settled at a new record closing high of 28,433.00, up by 93.12 points (or 0.33%)

Macro Update:  Last week, Carney dropped most of the retaliatory tariffs on goods from the US that are covered by the Canada-US-Mexico Agreement, a move welcomed by the White House. However, Canada's counter-tariffs on steel, aluminum and automobiles still remain. Yesterday, Canada-US Trade Minister Dominic LeBlanc had a "constructive [and] lengthy" meeting with US Commerce Secretary Howard Lutnick in Washington. The central bank has held its trendsetting overnight interest rate steady for its last three policy meetings at 2.75%. The Bank of Canada is scheduled to again decide on interest rates on September 17.

Top Movers:  Among the individual stocks, Royal Bank of Canada (5.08%), Onex Corp (1.99%), Canadian Imperial Bank of Commerce (1.70%), and Nuvista Energy Ltd (3.44%) were the prominent gainers.

Our Stance:  The index is currently testing a critical support level near 28,200. Holding this threshold is essential to preserving the bullish trend. A decisive break below could open the door to a short-term pullback, with subsequent support levels seen at 27,900 and 27,700. Sustaining price action above these zones will be key to limiting broader downside risks and maintaining positive market sentiment.

Commodity Update:  The dollar slipped Thursday as traders priced in a possible Fed rate cut next month after New York Fed chief John Williams hinted at easing, while President Trump’s push to oust Fed Governor Lisa Cook added pressure. Gold rose 0.34% to $3,444.82, silver 0.49% to $38.883, and copper 0.38% to $9,800.05. Brent crude fell 0.33% to $66.99, weighed by softer U.S. fuel demand outlook and tariff-driven supply concerns.

Technical Update:

The S&P/TSX Composite Index advanced 93.12 points on Wednesday to close at 28,433.00, marking a 0.33% gain and reflecting sustained investor confidence alongside healthy market participation. The financials sector was the primary driver of the day’s performance, rising 1.07% and contributing meaningfully to overall index strength. From a technical standpoint, the index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which underscores the prevailing bullish momentum. While the recent uptick remains modest, the setup indicates scope for further upside if buying interest persists. The index is currently testing a critical support level near 28,200. Holding this threshold is essential to preserving the bullish trend. A decisive break below could open the door to a short-term pullback, with subsequent support levels seen at 27,900 and 27,700. Sustaining price action above these zones will be key to limiting broader downside risks and maintaining positive market sentiment.