Markets Rebound with Small-Cap Leadership; Oil Pulls Back as War Risks Evolve
The Canadian Vanguard Stock Market Report – Wednesday March 25, 2026 Edition.
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The Toronto Market
The Toronto Market Index
The S&P/TSX Composite Index rose 441.01 points, or 1.38%, to close at 32,382.60. The index opened significantly above the previous session’s close and climbed rapidly early in the day. It experienced a sharp mid-day decline but rebounded quickly, finishing near its opening level.
Overall, it was a strong and positive session, reflecting both resilience and conviction in the market. The TSX outperformed the other major North American indices.
Today’s TSX Market Statistics
On the TSX, advancing issues outnumbered declining issues by a wide margin. A total of 1,785 stocks advanced, while 356 declined, resulting in an advancer-to-decliner ratio of 5.01 to 1, with 100 issues unchanged.
The exchange recorded 36 new 52-week highs and 22 new 52-week lows, compared with 74 new highs and 75 new lows in the previous session.
Total trading volume on the TSX reached 507,199,828 shares, representing a 3% increase from the 491,654,422 shares traded yesterday.
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The US Markets
U.S. Market Indexes
U.S. markets reversed the previous session’s decline and extended gains today, with all major indexes closing higher. The Dow Jones Industrial Average advanced 305.43 points, or 0.66%, to finish at 46,429.49. The S&P 500 rose 35.33 points, or 0.54%, ending at 6,591.90, while the Nasdaq Composite gained 167.93 points, or 0.77%, to close at 21,929.83. The Russell 2000 Index climbed 30.94 points, or 1.23%, to 2,536.38, marking its second consecutive day of strong gains.
Market sentiment was broadly positive, with all major indexes opening above their previous closing levels. Although some mid-day volatility was observed, the indexes recovered and remained in positive territory, ultimately closing below their intraday highs. Notably, the Russell 2000 has moved above its 200-day moving average, signaling improving momentum in small-cap stocks.
Today’s U.S. Market Statistics
On the New York Stock Exchange (NYSE), advancing issues outnumbered declining issues. There were 3,310 advancers compared to 1,157 decliners, with 333 issues unchanged, resulting in an advancer-to-decliner ratio of 2.86 to 1—approximately three advancers for every decliner.
The NYSE recorded 115 new 52-week highs and 127 new 52-week lows, compared with 149 new highs and 199 new lows in the previous session. Total trading volume reached 5,019,824,193 shares, representing an 11% decline from the 5,432,633,449 shares traded yesterday.
On the NASDAQ, advancing stocks also exceeded declining stocks, with roughly two advancers for every decliner. A total of 3,255 stocks advanced, while 1,535 declined, resulting in an advancer-to-decliner ratio of 2.12 to 1, with 342 issues unchanged.
The NASDAQ posted 82 new 52-week highs and 203 new 52-week lows, compared with 65 new highs and 253 new lows in the prior session. Total trading volume reached 8,302,589,110 shares, down 6% from yesterday’s 8,835,855,311 shares.
Today’s U.S. Market Wrap-Up Report
U.S. equities extended their rebound, led once again by small-cap strength. The Russell 2000 Index outperformed for a second consecutive session and has now moved above its 200-day moving average—a notable technical improvement and an early signal of risk appetite returning. In contrast, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average remain below their respective 200-day moving averages, indicating that broader market confirmation is still lacking. Given the market’s reaction to ongoing geopolitical tensions, a measured approach to exposure remains warranted, as conditions do not yet support full capital deployment.
Market internals were decisively constructive. Breadth was strong across both major exchanges, with advancing stocks roughly doubling decliners on the New York Stock Exchange and the NASDAQ. This level of participation supports the durability of the current move, although it is tempered by lighter trading volume—down 11% on the NYSE and 6% on the NASDAQ—suggesting that institutional conviction has not fully returned.
Sector performance confirmed the positive tone, with 10 of 11 sectors closing higher. Energy was the sole laggard, slipping marginally by 0.07%. Notably, the Basic Materials sector led the market for a second straight session, signaling a meaningful rotation. Earlier in the Middle East conflict, Materials consistently underperformed while gold and precious metals dominated leadership. This week’s reversal suggests a shift in market expectations—potentially tied to easing defensive positioning or changing views on inflation and supply dynamics. For active traders, this highlights the importance of tracking real-time sector rotation rather than relying on prior leadership trends.
On the stock-specific front, leadership was concentrated in technology and optical networking. Lumentum Holdings (LITE) surged 10%, while Coherent Corp. (COHR) gained 6.8%, following their inclusion in the S&P 500 as part of the latest index rebalancing. Semiconductor stocks also showed strong momentum, led by Arm Holdings (+16.38%), with additional strength from Intel Corporation (INTC) and Advanced Micro Devices (AMD). Within the optical and advanced manufacturing space, Fabrinet (FN) remains a name to monitor. As a provider of advanced optical packaging and precision electro-mechanical manufacturing services, the stock has demonstrated strong relative performance over the past year and continues to act well, making it a viable candidate for watchlists and momentum-focused strategies.
Bottom line: The market is showing improving breadth, strengthening small-cap leadership, and evolving sector rotation. However, with key indices still below long-term resistance and volume trends subdued, this remains a tactically constructive—but not yet fully confirmed—environment for investors and traders.
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(c) This article is published by The Canadian Vanguard on March 25, 2026
