Canadian Equities Rally Firmly Higher; Tech And Finance Drive Recovery

The Canadian stock market moved firmly into positive territory early in the week, bouncing back decisively from its previous session’s losses. The recovery was anchored by robust performance in technology and financial sectors, which demonstrated resilience and momentum as investors rotated back into growth-oriented equities. The benchmark S&P/TSX Composite Index climbed to 32,235.28 during intraday trading, settling up 248.22 points or 0.78% at 32,171.74 by midday, establishing a firmly positive tone for the session.

Technology And Financials Firmly Lead Market Upside

Technology stocks emerged as the session’s standout performers, with heavyweights Celestica and Shopify advancing 4% and 3.1% respectively. Several mid-cap tech names also contributed to the sector’s strength, including Computer Modelling Group, CGI Group, Docebo, Lightspeed Commerce, and Sangoma Technologies, each posting gains between 1.3% and 2%.

The financial sector provided equally robust support, with major institutions including Goeasy, Canadian Imperial Bank of Commerce, Brookfield Corporation, Bank of Montreal, and Manulife Financial climbing 2% to 3%. Beyond these leaders, a broad roster of financials demonstrated firmly higher momentum: Royal Bank of Canada, Toronto-Dominion Bank, Sun Life Financial, EQB, Igm Financial, Bank of Nova Scotia, Fairfax Financial Holdings, Trisura Group, and Power Corporation of Canada all rallied sharply, reflecting renewed investor confidence in the banking and insurance sectors.

Consumer Discretionary And Staples Capture Gains

Consumer-focused equities also contributed positively to the market’s advance. Discretionary names including Aritzia, Dollarama, Canadian Tire Corporation, BRP Inc., and Gildan Activewear posted gains ranging from 1.5% to 3.4%, while consumer staples such as Empire Company, Alimentation Couche-Tard, George Weston, Loblaw, Metro, and Saputo similarly advanced in the same range.

Materials Rebound Trimmed By Sector Rotation

Materials stocks initially benefited from recovering metal prices but subsequently surrendered their gains amid broader market rotation. Notably, Eldorado Gold declined sharply, down 8%, while several other commodity-linked names including Tourmaline Oil Corp., Kelt Exploration, NexGen Energy, Equinox Gold, Paramount Resources, Advantage Oil & Gas, Vermilion Energy, and Silvercorp Metals retreated between 2% and 6%. Energy stocks broadly underperformed, reflecting continued sector weakness despite the materials sector’s temporary relief.

Manufacturing PMI Firmly Exits Downturn, Signals Economic Rebound

Economic data released by S&P Global provided a firmly positive catalyst for the market’s recovery. Canada’s Manufacturing PMI rose to 50.4 in January 2026 from 48.6 in December, marking a decisive end to an eleven-month contraction streak and posting a 12-month high. This pivotal shift above the 50 threshold—which separates economic expansion from contraction—signals renewed manufacturing momentum and suggests the broader Canadian economy is firmly positioned for improved conditions ahead.