Canadian Stocks Show Significant Rebound

Index Update:  Following the sell-off seen in the previous session, Canadian stocks showed a strong move back to the upside during trading on Friday. The S&P/TSX Composite Index surged 608.43 points or 1.9 percent to 33,073.71, partly offsetting the 2.4 percent plunge seen during Thursday's session but still closed well off the record closing high set earlier in the week.

Macro Update:  The U.S. Labor Department said its consumer price index rose by 0.2% in January after climbing by 0.3% in December. Economists had expected prices to rise by another 0.3%. The annual rate of growth by consumer prices slowed to 2.4% in January from 2.7% in December, coming in below estimates of 2.5%. The annual rate of growth by core consumer prices dipped to 2.5% in January from 2.6% in December, which was in line with estimates. Data from Statistics Canada showed car Registrations in Canada decreased to 127,248 units in December from 148,726 Units in November of 2025.

Top Movers:  January US CPI slowed to 2.4%, easing pressure on Treasury yields and the dollar, while gold rebounded from the prior session’s selloff, lifting miners including Agnico Eagle (5.5%) and Barrick Gold (5.6%).

Our Stance:  Price action is holding near the key 33,000 support; sustained trade above this level would preserve the bullish bias, while a decisive break below could weaken momentum and open scope for a pullback toward 32,700–32,600.

Commodity Update:  The U.S. dollar held firm on Tuesday as investors looked ahead to signals later this week on the potential timing of Federal Reserve rate cuts. Precious metals retreated, with gold falling 0.74% to USD 4,978.90 and silver down 1.51% to USD 75.40, while copper eased 0.58% to USD 12,781.75. Geopolitical focus remained on Iran’s naval drills near the Strait of Hormuz ahead of nuclear talks with the U.S. in Geneva.

Technical Update:

On Friday, the S&P/TSX Composite Index advanced 608.43 points (+1.87%) to close at 33,073.71. While the move was measured, healthy trading volumes reflected continued investor participation and confidence in the broader trend. Technically, the index remains comfortably above its 50-period SMA, confirming short-term trend strength and keeping bullish momentum intact. The 14-period RSI at 55.58 signals steady buying interest without overbought conditions, leaving room for further upside, though brief consolidation is possible. Price action is holding near the key 33,000 support; sustained trade above this level would preserve the bullish bias, while a decisive break below could weaken momentum and open scope for a pullback toward 32,700–32,600.