Canadian Equities Moderately Climb as Metals Rally Energizes Market

Canadian equities posted modest gains Tuesday, with the materials sector leading the charge amid rising commodity prices. The broader market saw solid participation from healthcare, financials and technology shares, though investors remained cautious ahead of major policy decisions from both the Bank of Canada and the U.S. Federal Reserve scheduled for Wednesday.

Market participants are bracing for a 25 basis point rate cut from the Federal Reserve, while the Bank of Canada is expected to maintain its current policy stance. The forward guidance from both central banks is under close scrutiny for any signals regarding future monetary tightening or easing cycles.

The S&P/TSX Composite Index advanced 170.50 points, representing a 0.55% increase to settle at 31,340.47 by mid-trading. This moderately positive move reflected broad-based strength across multiple sectors.

The Materials Capped Index emerged as the session’s standout performer, jumping nearly 2%. Within this segment, Pan American Silver Corp led the charge with an impressive 11.5% surge. Aya Gold & Silver and Frist Majestic Silver Corp also captured investor attention, gaining 7.5% and 6.8% respectively. Additional strength came from Endeavour Silver Corp., New Gold, Perpetua Resources, Eldorado Gold and Skeena Resources.

Financial stocks contributed to the upside move, with Sprott climbing 2.5%. Brookfield Asset Management, EQB, Great-West Lifeco, Manulife Financial, Sun Life Financial, Igm Financial and IA Financial all advanced between 1% and 2%.

Healthcare delivered notable outperformance, highlighted by Curaleaf Holdings’ nearly 8% jump. Chartwell Retirement Residences added approximately 0.5%.

Despite the market’s moderately higher trajectory, sentiment remained measured as traders weighed macro developments before the week’s critical policy announcements.