Canadian Stocks Tumble

Index Update:  Canadian stocks slumped on Thursday as investors resorted to profit taking from the gains made from yesterday's surge in stocks as well as from previous two sessions despite the U.S. government reopening boosting market sentiment. After opening below yesterday's close, the benchmark S&P/TSX Composite Index traded firmly negative throughout the session to finally close at 30,253.64, down by 573.94 points (or 1.86%).

Macro Update:  In the U.S., Monday's Senate-passed short-term funding bill to run the government was approved by the House yesterday and later signed by U.S. President Donald Trump, thereby ending the longest shutdown in the history of U.S., which started on October 1. Recent U.S. private labor market data revealed a decline in new hiring and increase in joblessness, supporting calls for another rate cut. In his continuing efforts to boost the domestic economy impacted by Trump's tariffs, Canadian Prime Minister Mark Carney is set to announce a slew of nation-building projects that will be sent to the newly created Major Projects Office in efforts to fast-track infrastructure approvals.

Top Movers:  Among the individual stocks, BCE Inc (1.60%), Quebecor Inc (1.07%), Linamar Corp (5.27%), and Restaurant Brands International Inc (1.94%) were the prominent gainers.

Our Stance:  On the downside, immediate support is seen around 30,100, a level that bulls will need to defend to avoid further weakness. A decisive breakdown below this zone could open the door for a deeper correction toward 29,900 and 29,700. Conversely, sustained closes above 30,100 would help maintain the current bullish bias and keep the near-term outlook intact.

Commodity Update:  The dollar struggled to recover on Friday, heading for a weekly decline as traders awaited delayed U.S. data expected to reveal a softening economy. Gold inched up 0.30% to USD 4,205.75, while silver dipped 0.09% to USD 53.12. Copper was marginally higher at USD 10,909.40. Brent crude jumped 2.13% to USD 64.35 after a Ukrainian drone strike hit an oil depot in Russia’s Black Sea port of Novorossiysk, lifting supply concerns.

Technical Update:

The S&P/TSX Composite Index declined 573.94 points (−1.86%) on Thursday, closing at 30,253.64 as mild profit-taking weighed on market sentiment. Despite the pullback, the broader technical outlook remains constructive, with the index holding comfortably above its 50-period Simple Moving Average (SMA). This key moving average continues to act as dynamic support, reinforcing the prevailing short-term uptrend and signaling that buyers still retain control. Momentum conditions remain stable, with the 14-period Relative Strength Index (RSI) hovering near 51.84 firmly within a neutral-to-positive zone—indicating underlying resilience. On the downside, immediate support is seen around 30,100, a level that bulls will need to defend to avoid further weakness. A decisive breakdown below this zone could open the door for a deeper correction toward 29,900 and 29,700. Conversely, sustained closes above 30,100 would help maintain the current bullish bias and keep the near-term outlook intact.