The Toronto Stock Exchange roared to life Monday morning as investors flooded back into equities following last week’s pullback, sending the S&P/TSX Composite Index climbing more than 200 points by late morning trading. The benchmark index hit 22,467.35, representing a solid 0.9 percent gain that suggests renewed confidence across multiple sectors.
“We’re seeing a classic momentum rebound after the profit-taking that dominated last week,” said Michael Rodriguez, chief market strategist at RBC Capital Markets. “The combination of strong energy prices and tech sector optimism is creating a powerful upward force in Canadian markets today.”
The surge was primarily fueled by a remarkable performance in the technology sector, with Shopify Inc. leading the charge. The e-commerce giant jumped 3.2 percent, continuing its recovery from April’s selloff as analysts upgraded their outlook on the company’s international expansion efforts. Constellation Software and CGI Group followed suit with gains exceeding 2.5 percent each.
Energy stocks contributed substantially to the upward momentum, bolstered by crude oil prices climbing above $78 per barrel. Suncor Energy advanced 2.7 percent while Canadian Natural Resources added 2.3 percent, reflecting optimism about global demand despite persistent inflation concerns.
The materials sector wasn’t far behind, gaining 1.2 percent as gold prices stabilized near $2,335 an ounce. Barrick Gold Corp rose 1.8 percent while First Quantum Minerals saw a 2.1 percent increase as copper prices maintained their upward trajectory on supply concerns from major producing regions.
“What we’re witnessing is a market increasingly convinced that the Bank of Canada will maintain its current stance on interest rates through summer,” noted Vanessa Chen, portfolio manager at TD Asset Management. “The resilience in commodity prices is particularly encouraging for TSX investors given the index’s heavy weighting in resource companies.”
The financial sector, which accounts for roughly 30 percent of the TSX’s weight, posted modest but meaningful gains of 0.6 percent. Royal Bank of Canada and Toronto-Dominion Bank each added approximately 0.7 percent, suggesting cautious optimism about the lending environment despite persistent high interest rates.
Trading volume reached 178.5 million shares by 11:30 a.m. ET, significantly higher than last week’s daily average, indicating robust investor participation across the board.
The Canadian dollar strengthened alongside equity markets, trading at 73.65 cents US compared to 73.32 cents at Friday’s close. This appreciation reflects both the strength in commodity prices and positive sentiment toward Canadian economic prospects.
Telecommunications was the only major sector showing weakness, with BCE Inc. dropping 0.5 percent following analyst concerns about increased competitive pressures in the wireless market.
The broader North American context supported today’s TSX gains, with major U.S. indices also trending higher. The S&P 500 climbed 0.7 percent while the tech-heavy Nasdaq Composite added 0.9 percent, suggesting a synchronized risk-on sentiment across North American markets.
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With the TSX now approaching its April highs, investors are watching closely for signs of sustainability in this rally. The question remains whether this momentum can carry through the traditionally volatile summer months or if economic headwinds will reassert themselves in the weeks ahead.
