NASDAQ and Small Caps Lead as Dow Rebounds; Tame Inflation Continues to Lift Stocks
The Canadian Vanguard Stock Market Report Thursday August 13, 2026 Edition
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The Toronto Market
Thursday Toronto Market Index
The Toronto S&P/TSX Composite Index rose 97.15 points, or 0.27%, to close at 36,759.14.
Market breadth in Toronto remained positive and strengthened today, while the TSX extended its winning streak to four consecutive sessions. Today’s gain was notably stronger than yesterday’s advance, and the index also reached a new record high.
The TSX has now posted a higher session low in each of the last five trading sessions, indicating continued underlying strength. The index has also closed higher for five consecutive sessions, suggesting that positive momentum remains behind the current uptrend.
Technically, the TSX continues to widen its distance above its 25-day, 50-day, and 200-day moving averages, reinforcing the positive trend. Although the index dipped around mid-day, it remained above the previous session’s low, another sign of continued strength.
Overall, Thursday’s trading action was constructive, with positive breadth, a new record high, higher daily lows, and sustained momentum supporting the TSX’s ongoing uptrend.
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Thursday’s TSX Market Statistics
At the TSX, advancing issues significantly outnumbered declining issues. There were 1,472 advancers and 716 decliners, producing an advancer-to-decliner ratio of 2.05 to 1—approximately two advancing issues for every declining issue. Another 124 issues closed unchanged.
The TSX also recorded 160 new 52-week highs and 18 new 52-week lows, compared with 125 new 52-week highs and 31 new 52-week lows yesterday. This represents a notable improvement in the new-high/new-low balance and provides further evidence of strong market breadth.
The ratio of new 52-week highs to new 52-week lows was approximately 8.9 to 1, or roughly nine new highs for every new low. This ratio was approximately the same as yesterday, indicating that the market continues to maintain a strong positive bias.
Overall, the market internals remained strongly bullish, with advancing issues more than twice the number of declining issues and new 52-week highs vastly outnumbering new lows. These indicators suggest that the TSX continues to possess considerable internal strength, with several signs pointing toward an ongoing bullish trend.
Total trading volume on the TSX reached 414,517,035 shares, approximately 1% lower than the 417,007,874 shares traded yesterday. Despite the modest decline in volume, trading activity remained substantial and the overall breadth statistics continued to support the market’s positive trend.
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Thursday’s Toronto TSX Market Wrap-Up Report
The Toronto stock market delivered another broadly positive session on Thursday, with the S&P/TSX Composite Index rising 97.15 points, or 0.27%, to close at 36,759.14. The TSX reached a new record high and extended its winning streak to four consecutive sessions. More importantly for traders and investors, the market’s internal strength remained solid, with advancing issues substantially outnumbering declining issues and new 52-week highs continuing to dominate new lows.
Broad-Based Sector Strength
Six of the ten major TSX sectors finished higher, matching Wednesday’s performance and reinforcing the market’s positive tone.
Financials was the strongest major sector, gaining 0.98%. Industrials, Basic Materials, and Utilities also contributed to the advance, rising 0.70%, 0.54%, and 0.27%, respectively.
On the weaker side, consumer-related sectors posted moderate declines. Durable Consumer Goods & Services fell 0.20%, while Discretionary Goods & Services declined 0.22%. The major laggard was Technology, which dropped 1.71% and limited the TSX’s overall gain.
Despite weakness in technology and selected consumer stocks, the broader sector performance remained constructive, with gains across six major sectors helping the index maintain its upward momentum.
Strong Market Breadth and Internal Momentum
The market internals provided one of the clearest bullish signals of the session.
There were 1,472 advancing issues compared with 716 declining issues, producing an advancer-to-decliner ratio of approximately 2.05 to 1. In other words, there were roughly two advancing stocks for every declining stock. Another 124 issues finished unchanged.
The new-high/new-low statistics were equally encouraging. The TSX recorded 160 new 52-week highs and only 18 new 52-week lows, compared with 125 new highs and 31 new lows on Wednesday. This produced a new-high-to-new-low ratio of approximately 8.9 to 1, or nearly nine new highs for every new low.
These figures point to strong underlying participation rather than an advance driven by only a handful of large-cap stocks. The market continues to demonstrate considerable internal strength.
Trading volume totaled 414,517,035 shares, approximately 1% below Wednesday’s 417,007,874 shares. The modest decline in volume did not materially weaken the otherwise positive breadth picture.
TSX Technical Picture Remains Constructive
Thursday’s price action added further evidence that the current TSX uptrend remains intact.
The index has now closed higher for five consecutive sessions and has recorded a higher session low in each of the last five sessions. Although the TSX dipped around mid-day Thursday, it remained above Wednesday’s low before recovering and reaching a new record high.
The index is also continuing to increase its distance above its 25-day, 50-day, and 200-day moving averages. This combination of rising prices, higher daily lows, strong breadth, and a widening gap above key moving averages suggests that positive momentum remains firmly in place.
For traders, however, the sharp divergence between sectors is worth watching. The broader market remains bullish, but Thursday’s 1.71% decline in Technology demonstrates that not every area of the market is participating equally.
Earnings Season Produces More Big Movers
The ongoing earnings season continues to generate significant gap-up opportunities and large individual-stock moves.
Total Energy Services Inc. (TOT) was one of Thursday’s standout performers after reporting strong earnings late Wednesday. The stock surged 17.46% to close at $29.73, with approximately 356,000 shares changing hands. The move demonstrates how strong earnings surprises continue to attract substantial buying interest.
Construction stocks have also been performing well during this earnings season. Bird Construction Inc. (BDT) advanced 11.44% to close at $71.88, with approximately 622,000 shares traded. The company reported quarterly revenue exceeding C$1 billion for the first time, and investors responded strongly to the results.
Not every earnings reaction was positive. North American Construction Group reported quarterly revenue of approximately C$401 million for the quarter ended June 30, up from C$320.6 million a year earlier. Despite the significant year-over-year revenue increase, the stock declined 6.49% on Thursday. The contrasting reaction is a useful reminder that strong headline revenue growth does not necessarily translate into a positive stock-market reaction; investors also focus heavily on earnings quality, margins, guidance, valuation, and expectations already embedded in the share price.
Key Takeaways for Traders and Investors
1. The TSX trend remains bullish.
The index reached another record high, extended its winning streak to four sessions, and has closed higher in five consecutive sessions.
2. Market breadth is a major positive.
Advancers outnumbered decliners by more than 2 to 1, indicating that Thursday’s advance had broad participation.
3. New highs continue to dominate new lows.
With 160 new 52-week highs versus only 18 new lows, the approximately 9-to-1 ratio remains a strong bullish market-internal signal.
4. Higher daily lows are reinforcing the uptrend.
The TSX has established a higher session low in each of the last five sessions. This is an important sign of underlying buying support.
5. The major moving averages continue to confirm the trend.
The TSX remains increasingly above its 25-day, 50-day, and 200-day moving averages, supporting the broader bullish technical picture.
6. Sector rotation remains important.
Financials and Industrials provided strong leadership, while Technology was a significant drag. Traders should continue to monitor which sectors are attracting new money.
7. Earnings are creating substantial stock-specific opportunities.
The large moves in TOT and BDT show that earnings surprises can produce powerful breakouts, while the decline in North American Construction Group illustrates the risk of assuming that strong revenue growth automatically leads to a higher stock price.
Bottom Line
Thursday’s session was another constructive day for the Toronto market. The TSX not only reached a new record high but also continued to display strong internal breadth, a substantial advantage in new 52-week highs over lows, and a pattern of higher daily lows. The index’s position above its key moving averages further supports the prevailing bullish trend.
While the Technology sector’s 1.71% decline and weakness in selected consumer stocks show that the advance is not uniform, the broader market evidence remains favorable. For traders and investors, the combination of record-high index levels, strong market breadth, expanding new highs, and sustained earnings-driven stock opportunities suggests that the TSX continues to have positive momentum behind its current uptrend.
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The US Markets
Thursday’s U.S. Market Indexes
Thursday’s U.S. market session resembled a rising tide lifting all boats, with all four major equity indexes finishing in positive territory. The broad-based advance was led by the technology-heavy Nasdaq Composite, while the Dow Jones remained the laggard despite snapping a three-session losing streak.
The Dow Jones Industrial Average bounced 69.72 points, or 0.13%, to close at 53,839.00. The S&P 500 gained 50.49 points, or 0.65%, finishing at 7,798.99. The Nasdaq Composite advanced 214.54 points, or 0.81%, to close at 26,803.03, while the Russell 2000 rose 7.36 points, or 0.24%, to 3,052.85.
Nasdaq Leads the Market Higher
The Nasdaq Composite was Thursday’s star performer, gaining 0.81% and pushing decisively above the 26,650 resistance area. The move had the characteristics of a potential technical breakout, as the index cleared its previous resistance zone while trading volume also increased.
The Nasdaq is now trading well above its 25-day, 50-day, and 200-day moving averages, reinforcing the strength of its intermediate- and longer-term uptrend. The ability to move above previous resistance with stronger volume is particularly encouraging for momentum-oriented traders, although follow-through in the next few sessions will be important in confirming the breakout.
S&P 500 Maintains Strong Technical Position
The S&P 500 gained 0.65% and remains comfortably above its 25-day, 50-day, and 200-day moving averages. The index continues to benefit from a favorable technical structure, with Thursday’s advance adding to the positive momentum.
The S&P 500’s performance also indicates that the strength in the U.S. market is not limited exclusively to technology stocks, although technology and growth-oriented shares continue to provide significant leadership.
Dow Recovers From Three-Day Decline
The Dow Jones was the weakest performer among the four major indexes, but Thursday’s 0.13% gain was still important because it ended a three-session losing streak.
Large-cap stocks have generally been lagging the stronger Nasdaq and broader growth-oriented market action. Nevertheless, the Dow’s return to positive territory suggests that selling pressure may be easing. Traders will want to see whether the Dow can build on Thursday’s recovery in the sessions ahead.
Russell 2000 Extends Its Winning Streak
The Russell 2000, representing U.S. small-cap stocks, gained 0.24% and continued its run of daily advances.
The small-cap index also further increased its distance above its 25-day moving average, while remaining well above its 50-day and 200-day moving averages. This is an encouraging technical development because sustained small-cap strength can provide evidence of broader participation in a market rally.
Key Takeaways for Traders and Investors
1. All major U.S. indexes finished higher.
The broad-based advance is constructive, with the Dow, S&P 500, Nasdaq Composite, and Russell 2000 all closing in the green.
2. Nasdaq remains the clear market leader.
Its 0.81% gain was the strongest among the major indexes, and the move above the 26,650 resistance area could represent an important breakout.
3. Watch Nasdaq for breakout confirmation.
The combination of a move above resistance and increased volume is encouraging. Continued strength and follow-through would provide greater confirmation that the breakout is sustainable.
4. Small caps continue to show strength.
The Russell 2000 extended its winning streak and remains well above its major moving averages, suggesting that market participation is not confined to mega-cap technology stocks.
5. The Dow remains the relative laggard.
Although the Dow snapped three consecutive sessions of declines, its modest 0.13% gain shows that large-cap blue-chip stocks continue to trail the Nasdaq and S&P 500.
6. The broader technical picture remains bullish.
The Nasdaq, S&P 500, and Russell 2000 are all trading well above their 25-day, 50-day, and 200-day moving averages, providing continued technical support for the broader U.S. market uptrend.
Bottom Line
Thursday was a strong and broadly positive session for U.S. equities. The most significant development was the Nasdaq Composite’s move above the 26,650 resistance area, accompanied by stronger volume. If the index can maintain that breakout and establish the former resistance zone as new support, the move could attract additional momentum-oriented buying.
At the same time, continued strength in the Russell 2000 is encouraging because it suggests that the rally is receiving participation beyond the largest technology companies. The Dow’s modest recovery remains less impressive, but its return to positive territory after three consecutive declines is nevertheless constructive.
Overall, the technical picture remains decidedly bullish, with all four major indexes above their key moving averages and Thursday’s broad-based advance adding further momentum to the U.S. equity market.
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Thursday’s U.S. Market Statistics
Thursday’s market internals were broadly positive at both the NYSE and Nasdaq, providing further confirmation that the advance in the major U.S. indexes was supported by reasonably broad participation. Advancing issues outnumbered declining issues on both exchanges, while new 52-week highs substantially exceeded new lows.
NYSE Market Breadth Remains Strong: At the New York Stock Exchange (NYSE), there were 2,990 advancing issues compared with 1,437 declining issues, while 504 issues closed unchanged. This produced an advancer-to-decliner ratio of approximately 2.08 to 1, meaning there were roughly two advancing stocks for every declining stock.
The NYSE also recorded a dramatic increase in new 52-week highs. There were 509 new 52-week highs and 96 new 52-week lows, compared with 99 new highs and 62 new lows on Wednesday.
The new-high-to-new-low ratio improved substantially to approximately 5.3 to 1, compared with about 2.25 to 1 on Wednesday. Although the number of new lows also increased, the much larger increase in new highs is the more important development. The data point to a substantial expansion in the number of stocks participating in the market’s advance.
NYSE trading volume reached 4.93 billion shares, approximately 4% higher than Wednesday’s 4.75 billion shares. Day-to-day volume routinely fluctuates by several percentage points, so Thursday’s increase should not by itself be interpreted as a major change in market participation. More importantly, the increase in volume occurred alongside strong breadth and a large expansion in new 52-week highs.
Overall, the NYSE internals remained strongly bullish, with a favorable advancer-to-decliner ratio and new highs overwhelmingly outnumbering new lows.
Nasdaq Breadth Strengthens: The Nasdaq also produced positive market breadth, although its advancer-to-decliner ratio was less powerful than that of the NYSE. There were 2,975 advancing issues and 1,928 declining issues, with 398 issues unchanged. This resulted in an advancer-to-decliner ratio of approximately 1.54 to 1, or about three advancing stocks for every two declining stocks.
This represented an improvement in Nasdaq breadth and provided additional support for Thursday’s strong performance by the Nasdaq Composite.
The Nasdaq recorded 379 new 52-week highs and 122 new 52-week lows, compared with 238 new highs and 120 new lows on Wednesday. The number of new highs increased substantially, while new lows increased only marginally. Consequently, the new-high-to-new-low ratio improved to approximately 3.1 to 1, compared with roughly 2.0 to 1 on Wednesday.
The relatively small change in the number of new lows, combined with the significant increase in new highs, suggests that the Nasdaq’s internal condition remains stable and bullish rather than showing signs of widespread deterioration.
Nasdaq trading volume reached approximately 8.67 billion shares, about 5% higher than Wednesday’s 8.27 billion shares. The combination of higher volume, positive breadth, and a substantially greater number of new highs is supportive of the Nasdaq’s current momentum.
Key Takeaways for Traders and Investors
1. Market breadth is positive on both major exchanges.
The NYSE recorded a strong 2.08-to-1 advancer-to-decliner ratio, while Nasdaq produced a healthy 1.54-to-1 ratio.
2. New highs are expanding.
The NYSE recorded 509 new 52-week highs, more than five times its 96 new lows. Nasdaq also recorded 379 new highs versus 122 new lows.
3. Thursday’s rally had broad internal support.
The combination of positive breadth, expanding new highs, and higher trading volume suggests that the strength in the major indexes was not simply a narrow, index-driven advance.
4. Nasdaq’s internal picture remains particularly constructive.
With advancing issues outnumbering decliners and new highs substantially exceeding new lows, the internal data support the Nasdaq Composite’s technical breakout described in the market-index report.
5. Volume provided additional confirmation.
NYSE volume increased approximately 4%, while Nasdaq volume rose about 5%. Neither move is extraordinary by itself, but higher volume accompanying positive breadth and rising indexes is constructive.
6. The overall market environment remains bullish.
The internals at both exchanges continue to show a favorable combination of advancing stocks, expanding new highs, and relatively limited new lows.
Bottom Line: Thursday’s U.S. market statistics provide solid confirmation of the bullish technical picture seen in the major indexes. The NYSE displayed particularly strong breadth, with more than two advancing issues for every declining issue and new 52-week highs exceeding new lows by more than five to one.
The Nasdaq’s breadth was somewhat less powerful but still clearly positive, while the sharp increase in new highs and higher trading volume provided additional evidence that the market’s advance is receiving meaningful participation.
Taken together with Thursday’s index performance—particularly the Nasdaq’s move above resistance—the market internals remain constructive and bullish. Traders should continue to monitor whether the Nasdaq can sustain its breakout and whether the strong breadth and expansion in new highs persist in the coming sessions.
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Thursday U.S. Market Wrap-Up Report
U.S. stocks finished broadly higher Thursday as lower Treasury yields, tame inflation and declining oil prices helped investors return to technology stocks. All the four major U.S. market indexes finished in positive territory, with the Nasdaq Composite leading the advance.
The Dow Jones Industrial Average rose 69.72 points, or 0.13%, to close at 53,839.00, ending a three-session losing streak. The S&P 500 gained 50.49 points, or 0.65%, to finish at 7,798.99. The Nasdaq Composite jumped 214.54 points, or 0.81%, to close at 26,803.03, while the Russell 2000 advanced 7.36 points, or 0.24%, to 3,052.85.
The Nasdaq was clearly the star performer. The index moved decisively above the 26,650 resistance area, with the breakout accompanied by an increase in trading volume. The move gives the Nasdaq the appearance of a developing technical breakout, although traders will want to see follow-through in subsequent sessions before treating the move as fully confirmed.
The S&P 500 and Russell 2000 also reached new highs, while both remained comfortably above their 25-day, 50-day, and 200-day moving averages. The Nasdaq is similarly trading well above all three major moving averages. The Russell 2000 also continued to widen its distance above its 25-day moving average, reinforcing the positive technical structure of the small-cap market.
Sector Performance
Six of the eleven major U.S. sectors finished higher.
Telecommunications Services was Thursday’s strongest sector, gaining 1.86%. Technology followed with a 1.29% gain, while Durable Consumer Goods & Services advanced 0.75%. Utilities added 0.33%.
On the downside, Industrials declined 0.53%, while Basic Materials was the weakest major sector, falling 1.56%.
The strength in Technology was particularly important given the Nasdaq’s breakout. At the same time, the mixed performance among cyclical sectors suggests that investors should continue to pay attention to sector rotation rather than assuming that every segment of the market is participating equally.
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Strong Market Internals Confirm Broad Participation
Thursday’s market statistics provided important confirmation that the gains in the major indexes were supported by broad participation.
At the NYSE, 2,990 issues advanced compared with 1,437 decliners, producing an advancer-to-decliner ratio of approximately 2.08 to 1. There were also 504 unchanged issues.
The NYSE recorded an impressive 509 new 52-week highs versus only 96 new 52-week lows, producing a new-high-to-new-low ratio of approximately 5.3 to 1. This was a substantial improvement from Wednesday’s roughly 2.25-to-1 ratio and indicates a significant expansion in the number of stocks participating in the advance.
NYSE trading volume reached approximately 4.93 billion shares, about 4% higher than Wednesday’s 4.75 billion shares. The increase is not unusually large given normal day-to-day volume fluctuations, but higher volume alongside strong breadth and expanding new highs is constructive.
The Nasdaq also produced positive breadth, with 2,975 advancers and 1,928 decliners, for an advancer-to-decliner ratio of approximately 1.54 to 1. The exchange recorded 379 new 52-week highs and 122 new 52-week lows, producing a new-high-to-new-low ratio of roughly 3.1 to 1.
Nasdaq trading volume reached approximately 8.67 billion shares, about 5% higher than Wednesday’s 8.27 billion shares.
Taken together, the breadth statistics suggest that Thursday’s advance was not simply an index-driven move. The strong number of advancing issues and the substantial expansion in new 52-week highs point to healthy underlying participation.
Sandisk Leads Memory-Stock Rally
Sandisk Corp. (SNDK) was one of the most notable individual stocks Thursday after management delivered an upbeat presentation at an analyst meeting in New York City.
Sandisk executives provided an optimistic longer-term outlook, saying they expect revenue to grow at a mid-to-high-teens rate, consistent with memory-bit growth, through fiscal 2030. Management also projected adjusted gross margins of approximately 80% and adjusted operating margins of roughly 75%.
The outlook triggered strong buying in Sandisk shares and also benefited other memory-chip companies. Micron Technology (MU) and SK Hynix (SKHY) both moved higher as investors responded positively to the industry’s longer-term growth prospects.
The strength in memory-related stocks is particularly noteworthy given the Nasdaq’s leadership Thursday. Traders should continue watching this group for momentum and confirmation that investor appetite for semiconductor and technology-related growth stocks remains strong.
Hard-Disk Drive Stocks Surge: Hard-disk drive manufacturers were also among Thursday’s notable winners. Seagate Technology (STX) gained approximately 4.9%, while Western Digital (WDC) jumped approximately 7.3%. The gains came amid growing investor optimism surrounding the longer-term outlook for storage demand.
The moves in STX and WDC, together with the strong performance in memory stocks, indicate that investors are continuing to show interest in selected areas of the technology and data-storage complex.
Cybersecurity and Payments Stocks Remain Active: Cybersecurity and payment-system stocks also showed strong momentum. Global Payments Inc. (GPN) gained 7.12%, closing at $94.83 with approximately 3.6 million shares traded. CrowdStrike Holdings (CRWD) advanced 1.69%, closing at $225.53 with approximately 5.8 million shares changing hands.
The continued strength in these groups adds another positive element to the technology and growth-stock picture, particularly as investors continue to favor companies with strong secular growth prospects.
Key Takeaways for Traders and Investors
1. The U.S. market remains technically bullish.
All four major indexes finished higher, with the Nasdaq leading and the S&P 500 and Russell 2000 reaching new highs.
2. Nasdaq’s breakout deserves close attention.
The Nasdaq moved above the 26,650 resistance area with increased volume. Continued follow-through would strengthen the case that a meaningful breakout is underway.
3. Market breadth strongly supports the rally.
NYSE advancers outnumbered decliners by more than 2 to 1, while Nasdaq advancers led by roughly 1.5 to 1.
4. New highs are expanding significantly.
The NYSE produced 509 new 52-week highs versus 96 new lows, while Nasdaq recorded 379 new highs versus 122 new lows. This is a strong indication of expanding participation.
5. Small caps remain encouraging.
The Russell 2000 continues to advance and remains well above its major moving averages. Sustained small-cap strength would provide additional evidence of broad market participation.
6. Technology leadership is strengthening.
The Technology sector gained 1.29%, while memory, storage, cybersecurity, and other technology-related stocks attracted strong buying interest.
7. Earnings and company-specific guidance remain major catalysts.
The sharp moves in SNDK, STX, WDC, and GPN demonstrate that individual company outlooks continue to create substantial trading opportunities.
8. Watch for confirmation rather than chasing strength.
The market’s technical and internal conditions are favorable, but traders should watch whether Thursday’s breakouts hold and whether breadth remains strong in subsequent sessions.
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Bottom Line
Thursday was a strong and broadly constructive session for U.S. equities. The Nasdaq’s move above resistance, new highs in the S&P 500 and Russell 2000, positive breadth on both the NYSE and Nasdaq, and the substantial expansion in new 52-week highs all point to a market with considerable internal strength.
The most encouraging feature is that the bullish index action was accompanied by strong market internals. More stocks advanced than declined, new highs substantially outnumbered new lows, and trading volume increased on both major exchanges.
For traders and investors, the market currently presents a favorable technical environment, with momentum strongest in technology, growth, and selected small-cap areas. The key question for the next few sessions is whether Thursday’s Nasdaq breakout can hold and attract further buying while the broad market continues to produce strong breadth and expanding new highs.
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(c) This article is published by The Canadian Vanguard on August 13, 2026
