Canada's S&P/TSX Composite Index reached a record high on Tuesday, closing at 35,749.70, up 0.5% or 181.56 points, surpassing Monday's previous peak, according to livemint.com. The tech sector led gains with a 5.1% increase, including a 9.5% rise in Celestica shares, while the materials group declined 1.6% due to falling gold prices.
The market rally was driven by a global rotation away from semiconductor stocks toward sectors more favorable to the Canadian market. The U.S. S&P 500 also rose, supported by gains in Boeing and Coca-Cola, which offset declines in chip stocks ahead of quarterly earnings reports from major tech companies like Apple. Michael Dehal, senior portfolio manager at Dehal Investment Partners, described the movement as a market rotation.
This shift highlights changing investor preferences amid upcoming earnings announcements from key technology firms, influencing both Canadian and U.S. markets. The strong performance of tech and financial shares on the TSX contrasts with the weakness in materials, particularly gold, reflecting sector-specific dynamics. Celestica's notable share increase underscores the tech sector's contribution to the index's record close.
The TSX's record close at 35,749.70 on July 28 marks a milestone for Canada's main stock index, reflecting broader market trends and sector rotations ahead of major corporate earnings releases this week.