Canadian stocks surged on Tuesday, rebounding from Friday's losses

Index Update:  After opening just above the previous week's close, the benchmark S&P/TSX Composite Index gained momentum from the start of the session and traded firmly positive to settle at 30,353.61, up by 502.72 points (or 1.68%).

Macro Update: Gold and silver, both of which have been up for three consecutive sessions, posted record highs today. Comex Gold for October delivery climbed to $4,138.70 per troy ounce and Comex Silver for October delivery rose to $50.314 per troy ounce. Yesterday, U.S. Treasury Secretary Scott Bessent stated that Trump remains on track to meet the Chinese premier at the Asia-Pacific Economic Cooperation forum, hosted by South Korea in late October. This news halted the sell-off. Markets anticipate a 25-basis-point rate cut by the U.S. Federal Reserve later this month. In Canada, the Bank of Canada cut its benchmark interest rate by 25 basis points to 2.5% in September as largely expected by markets. On Friday, data released by Statistics Canada revealed that Canada's unemployment rate held steady at 7.1% in September, below market expectations of 7.2%. It also showed that Canada's employment rose by 60,400, a 0.3% increase in September following a 65,500 decline in the prior month, and well above market estimates of a 5,000 increase.

Top Movers: Among the individual stocks, Orla Mining Ltd (19.58%), Endeavour Silver Corp (13.99%), Ero Copper Corp (10.60%), Iamgold Corp (7.66%), Bitfarms Ltd (40.96%), and Curaleaf Holdings Inc (5.67%) were the prominent gainers.

Our Stance: The index is currently consolidating near a key support zone around 30,100. Holding above this level will be vital for maintaining market confidence and preserving the broader uptrend. However, a decisive break below this support could suggest bullish fatigue, potentially leading to a pullback toward 29,900 and 29,700. 

Commodity Update: The U.S. dollar weakened on Wednesday after Fed Chair Jerome Powell’s comments fueled expectations of an interest rate cut this month. Precious metals gained, with gold up 0.71% to $4,192.45, silver rising 1.07% to $51.15, and copper advancing 0.49% to $10,640.50. Brent crude slipped 0.19% to $62.27, extending losses amid the IEA’s supply surplus warning for 2026 and concerns over U.S.-China trade tensions impacting demand.

Technical Update:

On Tuesday, the S&P/TSX Composite Index advanced 502.72 points, or 1.68%, to close at 30,353.61. The strong gain was accompanied by robust trading volumes, underscoring sustained investor confidence and reinforcing the prevailing bullish momentum. Technically, the index remains firmly in an uptrend, trading comfortably above its 21-period Simple Moving Average (SMA), which continues to provide dynamic support. Momentum indicators also remain constructive, with the RSI (14) at 63.34, indicating persistent buying pressure. The index is currently consolidating near a key support zone around 30,100. Holding above this level will be vital for maintaining market confidence and preserving the broader uptrend. However, a decisive break below this support could suggest bullish fatigue, potentially leading to a pullback toward 29,900 and 29,700.