NASDAQ Outpaces Major Indexes as Tech Rotation Shows Signs of Easing

The Canadian Vanguard Stock Market Report – Monday February 9, 2026 Edition.

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The Toronto Market

The Toronto Market Index
The S&P/TSX Composite Index surged 552.34 points, or 1.70%, to close at 33,023.32. Toronto markets staged a strong rebound, driven primarily by gains in precious and industrial mining stocks. After suffering a sharp decline on Thursday, the index has now fully retraced those losses by the end of today’s session. However, with gold and silver prices appearing extended, any corrective pullback in precious metals could leave the TSX vulnerable to increased volatility.

                                                                                                                                                                     

Monday’s TSX Market Statistics
Market breadth on the TSX was decisively positive, with advancing issues significantly outpacing decliners. A total of 1,476 stocks advanced versus 690 declines, producing a strong advancer-to-decliner ratio of 2.14 to 1, a level typically associated with broad-based buying interest rather than narrow leadership. An additional 145 issues finished unchanged, reinforcing the view of a balanced but bullish session.

Momentum indicators also improved, as 275 stocks registered new 52-week highs while only 20 recorded new 52-week lows. This expansion in new highs—up from 227 on Friday—alongside a decline in new lows suggests improving intermediate-term trend strength and growing investor confidence across multiple sectors.

Trading volume totaled 500.96 million shares, essentially flat compared with Friday’s activity. While volume did not expand materially, it remained sufficient to validate the day’s advance, indicating steady institutional participation rather than short-covering or speculative excess.

Monday’s Toronto Market Wrap-Up Report

Toronto equities delivered a decisively risk-on session Monday, with performance heavily concentrated in growth- and commodity-sensitive areas of the market. Basic Materials surged 4.63% and Technology advanced 3.08%, making them the clear leaders, while Financials gained a solid 0.94%, providing additional index-level support. In contrast, Utilities—typically favored during periods of uncertainty—were the weakest sector, reinforcing the day’s pro-cyclical tone.

Market Breadth and Technical Backdrop

Market internals strongly confirmed the advance. Advancing issues overwhelmed decliners by a 2.14:1 ratio (1,476 advancers vs. 690 decliners), a breadth reading typically associated with broad accumulation rather than narrow leadership. Momentum improved further as 275 stocks posted new 52-week highs, while only 20 recorded new lows, expanding the high–low spread and signaling strengthening intermediate-term trend conditions across multiple sectors.

Total volume of 500.96 million shares was essentially unchanged from Friday. While not explosive, turnover remained sufficient to validate the move, suggesting steady institutional participation rather than short-covering or speculative excess.

Sector Rotation and Leadership

Leadership within Basic Materials was overwhelmingly tied to precious metals and resource equities, with the top 20 TSX performers entirely composed of gold, silver, and mining names. Notably, leadership skewed toward small- and mid-cap miners, highlighting rising risk appetite and early-cycle behavior within the commodity complex.

• IAMGOLD Corp. (IMG) led the market, surging 10.52%.
• Large-cap miners also participated, confirming the move’s durability:
  • Franco-Nevada (FNV) +6.11%
  • Agnico Eagle Mines (AEM) +5.76%
  • Wheaton Precious Metals (WPM) +4.14% ($7.70), with 605k shares traded

The participation of both junior and senior miners suggests institutional capital rotating back into hard-asset exposure, likely reflecting improving commodity momentum and inflation-hedge demand.

In Technology, leadership was driven by established growth names rather than speculative laggards:

• Shopify Inc. rose 4.95% ($7.58) on 2.4M shares, indicating strong liquidity and conviction.
• Celestica Inc. gained 3.10% ($13.14), closing at $432.76 on 632.5k shares.

This combination points to quality growth leadership, not late-cycle chasing.

Financials and Defensive Contrast

The Big Six banks posted broad gains, adding structural support to the index:

• Royal Bank of Canada +1.53%
• Canadian Imperial Bank of Commerce +0.63%

         

Importantly, all major Canadian banks remain above their 25-day EMA, reinforcing the view that the financial sector remains technically healthy while continuing to offer reliable quarterly dividend income. The underperformance of Utilities alongside bank strength further underscores rotation away from defensives and toward growth and cyclicals.

Technical Implications

From a technical perspective, the session reflects:

• Broadening participation, reducing the risk of a narrow, fragile rally
• Expanding new highs, consistent with improving intermediate-term momentum
• Sector leadership aligned with rising risk appetite, particularly in commodities and technology

As long as breadth remains constructive and leadership holds above key short-term moving averages, the path of least resistance remains higher.

Short-Term vs. Swing-Trade Takeaways

• Short-term traders: Momentum favors precious metals, miners, and liquid tech leaders, but extended names—particularly small-cap miners—may be prone to near-term consolidation after sharp gains.
• Swing traders: The expansion in new highs and improving sector participation supports holding core positions in materials, select technology, and financially strong banks, especially while price action remains above short-term trend measures (e.g., 20–25 day EMAs).

Bottom line: Monday’s session reflected a healthy, risk-embracing market environment, with breadth, momentum, and sector rotation aligned in favor of continued upside—pending confirmation from follow-through volume and sustained leadership.

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The US Markets

U.S. Market Indexes

U.S. equities finished higher across the board Monday, extending Friday’s strong rebound, though with more measured follow-through. The Dow Jones Industrial Average added 20 points (+0.04%) to close at 50,135.87, holding comfortably above the psychologically important 50,000 level for a second consecutive session. Notably, the Dow opened below Friday’s close but reversed higher intraday, finishing above that level—an encouraging sign of underlying demand and near-term support confirmation.

The S&P 500 advanced 32.52 points (+0.47%), ending at 6,964.82, while the Nasdaq Composite outperformed, climbing 207.46 points (+0.90%) to 23,238.67. The Russell 2000 gained 18.71 points (+0.70%), closing at 2,689.05, signaling renewed participation from small-cap equities following last week’s broad-based rally.

While Monday’s gains were more subdued compared with Friday’s outsized move—when all major indexes surged more than 1.5%—the market’s ability to hold positive territory and build on recent strength is constructive. Among the major indexes, the Nasdaq remains the most technically fragile, despite posting its second consecutive gain, as it continues to exhibit higher sensitivity to rate expectations and growth sentiment.

Monday’s U.S. Market Statistics

New York Stock Exchange (NYSE):   Market breadth on the NYSE was positive, with advancing issues outnumbering decliners in a steady, uneventful follow-through session after Friday’s strong advance. A total of 1,611 stocks advanced, compared with 1,138 declines, while 87 issues finished unchanged, producing an advancer-to-decliner ratio of 1.41:1—roughly seven advancers for every five decliners. The internal data reflected orderly consolidation rather than directional surprise, consistent with a market digesting recent gains.

The NYSE recorded 297 new 52-week highs and 63 new 52-week lows, compared with 339 new highs and 56 new lows on Friday. While the number of new highs eased modestly, the high-to-low spread remained firmly positive, indicating that underlying trend strength continues to outweigh downside pressure.

Total NYSE volume reached 5.74 billion shares, down approximately 10% from Friday’s 6.39 billion. The lighter turnover suggests reduced urgency rather than distribution, reinforcing the view that Monday’s session represented a normal pause following last week’s momentum surge.

NASDAQ: Breadth on the NASDAQ also remained constructive, marking the third consecutive session in which advancers exceeded decliners. There were 2,905 advancing issues versus 1,925 declining issues, with 174 stocks unchanged, yielding an advancer-to-decliner ratio of 1.51:1, or roughly three advancers for every two decliners.

The exchange posted 379 new 52-week highs and 161 new 52-week lows, compared with 381 new highs and 231 new lows on Friday. While new highs were largely unchanged, the sharp reduction in new lows is technically encouraging and points to stabilizing downside momentum within growth and technology names.

Total NASDAQ trading volume came in at 8.36 billion shares, about 10% lower than Friday’s 9.27 billion. As with the NYSE, declining volume alongside positive breadth supports the interpretation of constructive consolidation rather than fading demand.

U.S. Market Wrap-Up Report – Monday

Major U.S. indexes advanced Monday, extending gains from Friday, though the move was more measured. While today’s gains were modest compared with Friday’s outsized 1.5%+ rally, all indexes finished in positive territory, maintaining a constructive technical posture.

• Dow Jones Industrial Average: +20 points (+0.04%), 50,135.87, holding above the 50,000 level for a second consecutive session. Intraday strength overcame a lower open, confirming near-term support.
• S&P 500: +32.52 points (+0.47%), 6,964.82, steady follow-through on Friday’s momentum.
• Nasdaq Composite: +207.46 points (+0.90%), 23,238.67, showing relative strength but remains the most technically fragile of the major indexes.
• Russell 2000: +18.71 points (+0.70%), 2,689.05, signaling small-cap participation in the ongoing risk-on rotation.

Interpretation: Breadth remained positive across both exchanges, though volume pulled back ~10% from Friday. The reduction in new lows, particularly on the NASDAQ, points to stabilizing downside pressure, while the advancers-to-decliners ratios indicate broad participation without speculative excess. Collectively, this is consistent with trend-following consolidation rather than exhaustion, a constructive signal for intermediate-term momentum.

Sector and Stock Highlights

• Top sectors: Basic Materials (+2.56%), Technology (+1.41%). Rotation away from Technology may be easing if today’s gains persist, with 7 of 11 major sectors advancing. Precious metals miners remained strong.
• Technology news: AI-related names and infrastructure providers led gains.
  • Oracle Corporation (ORCL): +9.64% ($13.77), 49.9M shares, despite prior concerns about borrowing for AI data centers.
  • Advanced Micro Devices (AMD): +3.63%, chart below 50-day EMA.
  • CoreWeave Inc. (CRWV): +7.6%

• • • • Iren Ltd (IREN): +10.33% ($4.32), 48M shares.
      • Apple Inc. (AAPL): Showing signs of early consolidation after multi-day gains.
      • Applovin Corporation (APP): +13.19% ($53.66), 10M shares, chart below 200-day EMA but early signs of repair, worth monitoring for potential swing opportunities.

Technical Implications

• Index-level: The Dow and S&P remain above short-term EMAs, supporting the ongoing uptrend. Nasdaq’s fragility calls for cautious positioning despite its outperformance Monday. Russell 2000 participation reinforces the risk-on rotation into cyclicals and small-cap stocks.
• Breadth & Volume: Positive advancer-to-decliner ratios paired with a drop in volume indicate a healthy consolidation, allowing the market to digest prior gains without triggering a reversal.

Short-Term vs. Swing-Trade Takeaways

• Short-term traders: Focus on liquid AI and technology leaders, as momentum remains favorable, but be cautious with smaller names showing high volatility. Minor pullbacks could offer tactical entry points.
• Swing traders: Look for charts breaking above key EMAs or showing repair patterns (e.g., Applovin, Iren). Materials and select tech names with positive breadth and institutional participation are attractive for multi-day holds. Avoid chasing stocks extended beyond near-term highs.

Bottom line: Monday’s U.S. session was a constructive follow-through day, with positive breadth and stabilizing volume signaling trend continuation. Market leadership is diversifying, rotation into materials and technology is showing resilience, and technical conditions across major indexes remain supportive for both short-term and intermediate-term trades.

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(c) This article is published by The Canadian Vanguard on February 9, 2026