TSX Rebounds, Set For Weekly Gains

The S&P/TSX Composite surged 1.9% to close at 33,074 on Friday, securing a weekly gain of 1.9% as softer-than-expected US inflation improved risk appetite and buoyed rate-sensitive and commodity-linked shares. 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%). Energy stocks lagged, however, as softer crude prices and rising supply tempered momentum within the sector, partially offsetting strength in materials. Elsewhere, Magna surged 18.9%, adding momentum to industrials after posting upbeat quarterly results. Air Canada advanced 3.7% after issuing an upbeat 2026 core-profit outlook, adding support to industrial and travel-related names. Despite the bounce, the index remains below recent highs as investors weigh the Fed’s policy path and the durability of global growth.

The S&P/TSX Composite rose around 0.6% to above the 32,650 mark on Friday, rebounding after the prior session’s pullback to set the Toronto exchange for a weekly advance of over 0.4% as softer-than-expected US inflation supported rate-sensitive and resource shares. US CPI slowed to 2.4% in January, easing pressure on yields and the dollar, while gold recovered from Thursday’s selloff, lifting miners including Agnico Eagle, Barrick and Wheaton up between 2% and 3%. Financials were mixed, with Royal Bank (-0.6%) and TD lower (-1.1%), while Manulife (1.4%) and National Bank advanced. Energy names were steadier as crude stabilized, with Canadian Natural and Cenovus posting modest gains. Elsewhere, Magna surged over 17%, adding momentum to industrials after posting upbeat quarterly results. Despite the bounce, the index remains below recent highs as investors weigh the Fed’s policy path and the durability of global growth.

Futures tracking the S&P/TSX Composite Index traded near the flatline on Friday ahead of major earnings. The US inflation rate eased more than expected, bringing forward the expectations of Federal Reserve rate cuts and supporting the credit outlook for heavyweight banks. Gold rose about 1% after yesterday's selloff, supporting Canadian mining shares. In addition, Agnico Eagle reported quarterly profit above estimates on higher gold prices. Meanwhile, oil prices edged lower as traders assessed expectations of a sizable supply surplus, rising inventories, and easing risks of a US-Iran conflict, weighing on energy stocks. In other news, Air Canada forecast 2026 core profit slightly above estimates. Also, investor await for earnings reports from Enbridge, TransCanada, Cameco, Cenovus Energy, Fairfax Financial and Constellation Software.