Canadian equities staged a recovery on Tuesday as investors assessed fresh developments in Canada-U.S. trade relations and the ongoing conflict in the Middle East, even as falling gold prices weighed on mining stocks. The S&P/TSX Composite Index climbed by 179 points, or 0.5%, to settle at 36,108, erasing a large part of its losses from the previous session.
Nearly all key sectors, except metals and mining, trended higher, with real estate, healthcare, and tech stocks leading the TSX’s rebound.
Top TSX Composite movers and active stocks
BlackBerry (TSX: BB) jumped nearly 8% to $12.45 per share, making it the top-performing TSX stock for the day. This rally in BB stock followed the Waterloo-based software firm’s announcement that its QNX division’s royalty backlog had reached a record US$1.2 billion, increasing by more than US$250 million, or 26%, in just two quarters.
This strong growth was mainly driven by rising adoption of BlackBerry’s QNX Software Development Platform 8.0 and the first design win for its Alloy Kore automotive operating system, which alone is expected to generate more than US$100 million in future royalties. The record royalty backlog and growing demand for QNX’s next-generation software fueled strong buying in BB stock.
Shares of Bombardier (TSX: BBD.B) also rose 4.4% after U.S. President Donald Trump backed away from his earlier threat to ban the Montreal-based business jet manufacturer’s aircraft sales in the United States.
During a campaign rally in Kansas on Monday, Trump acknowledged Bombardier’s significant U.S. operations and indicated that his administration would support the company rather than restrict its business. With more than half of Bombardier’s revenue coming from U.S. customers, the easing of concerns about potential sales restrictions boosted investor confidence in Bombardier stock.
CGI, Chartwell Retirement Residences, and Descartes Systems Group were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 3.8%.
In contrast, Hammond Power, Silvercorp Metals, Americas Gold and Silver, and Ero Copper slid by at least 4.8% each, making them the session’s worst-performing TSX stocks.
According to the exchange’s daily trade volume data, Enbridge, Athabasca Oil, TD Bank, Telus, and Canadian Natural Resources were the five most active stocks.
TSX today
Metals and natural gas prices continued to fall in early Wednesday trading, but oil prices inched up. Given these mixed commodity price trends, the TSX could open on a relatively flat note today, with gains in energy stocks potentially offsetting weakness in mining shares.
While no major economic releases are due this morning, Canadian investors may continue to monitor developments in Canada-U.S. trade relations after a fresh lawsuit challenged President Donald Trump’s 50% tariffs on certain Canadian goods.
On the geopolitical front, Iran has demanded an end to U.S. sanctions and military threats before resuming negotiations, keeping uncertainty around the Strait of Hormuz elevated.
Against this backdrop, commodity price movements and broader market sentiment could determine whether the TSX extends Tuesday’s recovery.
On the corporate events front, the TSX-listed Waste Connections will announce its latest quarterly results today after the market closing bell. Analysts expect the company to post earnings of US$1.52 per share with US$2.6 billion in revenue for the September quarter.
Market movers on the TSX today
