Canadian stocks slumped on Thursday

Index Update: fter opening below previous close, today the benchmark S&P/TSX Composite Index traded firmly negatively throughout the session before settling at 31,994.60, down by 576.95 points (or 1.77%).

Macro Update:  Reportedly, the U.S. abandoned the discussion plan but conceded later after a lot of persuasion by the Arab and Muslim nations. In Abu Dhabi, United Arab Emirates, negotiators from Russia and Ukraine concluded the second day of peace talks with the U.S. acting as mediator. Today, both nations agreed to exchange prisoners of war and chief negotiators from both sides remarked on positive progress. Analysts are monitoring how the issues on crucial "territorial concessions" are resolved. Signs of peace returning in the Middle East and Europe eroded some safe-haven demand for gold. Crude oil prices also took a hit with the supply disruption concerns fading.

Top Movers:  Among the individual stocks, Celestica Inc (6.48%), Kinaxis Inc (2.69%), Descartes Sys (1.64%), Superior Plus Corp (3.37%), Terravest Capital Inc (2.81%), and Fortis Inc (1.40%) were the prominent gainers.

Our Stance:  Momentum indicators remain supportive, with the 14-period Relative Strength Index at 42.47, suggesting momentum is easing but not signaling excessive weakness. On the downside, immediate support is located near 31,900, and a decisive break below this level could extend consolidation toward the 31,600 zone before buyers potentially re-emerge.

Commodity Update:  The U.S. dollar hovered near a two-week high on Friday, on track for its strongest weekly gain since November as equity markets retreated amid concerns over AI-related spending. The Japanese yen firmed ahead of Sunday’s national election. Commodities weakened, with gold down 1.10% to USD 4,836.20, silver sliding 6.72% to USD 71.56, and copper easing 0.79% to USD 12,830.00. Brent crude fell 0.74% to USD 67.05 as Middle East supply fears eased and attention turned to U.S.–Iran nuclear talks in Oman.

Technical Update:

The S&P/TSX Composite Index edged lower on Thursday to close at 31,994.60, as short-term profit-taking tempered recent upside momentum. Despite the modest pullback, the broader technical structure remains constructive, pointing to a phase of healthy consolidation rather than a full trend reversal. On the daily chart, the index continues to trade below its 21-period Simple Moving Average, which is acting as an important dynamic resistance level and limiting near-term upside attempts. Momentum indicators remain supportive, with the 14-period Relative Strength Index at 42.47, suggesting momentum is easing but not signaling excessive weakness. On the downside, immediate support is located near 31,900, and a decisive break below this level could extend consolidation toward the 31,600 zone before buyers potentially re-emerge.