TSX Reclaims 35,000 on Broad-Based Buying as U.S. Markets Close for Independence Day Holiday
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The Canadian Vanguard Stock Market Report, Weekend July 3 – 5, 2026 Edition
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The Canadian Vanguard Stock Market Report is updated regularly during the weekend.
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Sunday Evening News Update! – Futures are up Sunday evening. Dow Jones futures were up 0.1% vs. fair value. S&P 500 futures were up 0.2%. Nasdaq-100 futures advanced 0.7%, but were off Sunday evening highs – Sunday 9:05 pm ET.
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The Toronto Market (as at Friday Market Close)
Friday’s Toronto Market Index
The S&P/TSX Composite Index gained 308.17 points, or 0.88%, to close at 35,274.84 on Friday, extending its recent upward momentum. The index opened modestly above the previous session’s close and maintained a steady upward trajectory throughout most of the trading day, with relatively low intraday volatility. The subdued price fluctuations suggest a broadly constructive trading environment, characterized by consistent buying interest rather than speculative activity.
From a technical perspective, the TSX continues to trade comfortably above its 25-day, 50-day, and 200-day moving averages, reinforcing the prevailing bullish trend across the short-, medium-, and long-term time horizons. This alignment of key moving averages indicates sustained positive market momentum and may continue to support investor confidence, provided broader macroeconomic conditions remain favourable.
Friday’s advance also strengthened the index’s recent performance trend. After posting a modest 0.10% gain on Tuesday, trading paused on Wednesday for the Canada Day holiday before the TSX added a further 0.31% on Thursday. The index has now recorded gains in three consecutive trading sessions, with each session producing progressively stronger returns. Moreover, the TSX has closed higher in four of the past five trading sessions, highlighting improving market breadth and resilient buying momentum. If this pattern persists, the index could be positioned to challenge higher resistance levels in the near term, although investors will continue to monitor upcoming economic data, corporate earnings, and global market developments for potential catalysts.
Friday’s TSX Market Statistics
Market internals on the TSX reflected broad-based strength, with advancing issues significantly outnumbering declining issues. A total of 1,620 stocks advanced, while 396 declined, resulting in an advancer-to-decliner ratio of 4.10:1. An additional 147 issues closed unchanged. This strong market breadth indicates that buying interest was widespread across sectors rather than being concentrated in a small number of large-cap stocks.
The number of stocks reaching new 52-week highs also improved, with 220 issues recording new highs compared with 17 posting new 52-week lows. This represents an improvement from Thursday’s totals of 186 new highs and 36 new lows, suggesting that underlying market momentum continued to strengthen as more stocks participated in the advance.
Total trading volume on the TSX was 170.3 million shares, a decline of approximately 69% from Thursday’s volume of 551.4 million shares. The sharp reduction in activity was largely expected, as U.S. equity markets were closed in observance of the Independence Day holiday. The absence of U.S. market participants, coupled with lighter trading typical of a holiday period, contributed to lower overall market turnover.
Despite the lighter volume, the quality of Friday’s advance remained encouraging. The combination of a more than 4-to-1 positive advancer-to-decliner ratio and a notable increase in new 52-week highs suggests that the rally was supported by broad market participation rather than a narrow group of index heavyweights. While reduced holiday trading volume warrants some caution when interpreting a single session’s price action, the market internals point to a constructive and bullish tone heading into the new trading week.
Friday’s Toronto TSX Market Wrap-Up Report
The S&P/TSX Composite Index closed firmly higher on Friday, gaining 308.17 points, or 0.88%, to finish at 35,274.84. The benchmark index traded steadily higher throughout the session with relatively low intraday volatility, reflecting consistent buying interest rather than speculative trading. From a technical standpoint, the TSX remains comfortably above its 25-day, 50-day, and 200-day moving averages, reinforcing the positive trend across all major timeframes.
Market internals also confirmed the strength of the advance. Advancing issues outnumbered declining issues by more than four to one (1,620 versus 396), while the number of new 52-week highs increased to 220 compared with only 17 new lows. The broad participation in Friday’s rally suggests that buying interest extended across multiple sectors rather than being driven solely by a handful of large-cap stocks.
Sector and Company Highlights
Mining companies once again dominated the list of the TSX’s top-performing stocks, continuing the leadership displayed during Thursday’s session. Nineteen of the top 25 performing stocks were mining companies, underscoring the sector’s continued strength amid favourable commodity prices and investor demand for resource stocks. The breadth of participation within the mining sector suggests that investors continue to favour companies with exposure to precious and base metals.
Among individual companies, GFL Environmental Inc. rose 7.60% after announcing a quarterly cash dividend payable on July 31 to shareholders of record as of July 13. The announcement was well received by investors and helped propel the stock higher during the session.
Financial Sector
Canada’s financial sector delivered another generally positive performance. Five of the six largest Canadian banks finished the session higher, providing additional support to the broader index. Royal Bank of Canada was the lone exception, slipping a marginal 0.02%.
Bank of Nova Scotia led the major banks with a gain of 1.04% on trading volume of approximately 1.6 million shares. Toronto-Dominion Bank was the weakest performer among the group, declining 1.84%. Despite TD’s weakness, the banking sector continued to exhibit resilience, reflecting ongoing investor confidence in Canada’s large-cap financial institutions.
Manulife Financial Corporation advanced 0.72%, extending its recent upward trend. The stock also recorded another new 52-week high, surpassing the record established during Thursday’s session. The continued series of higher highs reinforces the stock’s positive technical profile.
Technology and Communications
Shopify Inc. gained 1.04% on trading volume of approximately 1.0 million shares. While the advance was modest relative to the broader market’s strength, the stock continues to improve technically and is now approaching its 200-day moving average. A decisive break above that long-term resistance level would represent an important technical milestone and could attract additional institutional buying interest. Traders may wish to monitor the stock closely over the coming sessions for confirmation of a sustained trend reversal.
Telesat Corporation advanced 2.50%, although trading volume remained exceptionally light at just 4,300 shares compared with 57,400 shares on Thursday and 49,500 shares on Tuesday. The low trading volume highlights the stock’s limited liquidity, a factor that can contribute to wider bid-ask spreads and greater price volatility. Investors should therefore interpret short-term price movements with caution.
Trading Activity
Total TSX trading volume declined to approximately 170.3 million shares, down nearly 70% from Thursday’s 551.4 million shares. The lighter activity was largely attributable to the closure of U.S. financial markets for the Independence Day holiday, which reduced overall North American trading participation. Although volume was below normal, the quality of the advance remained encouraging given the exceptionally strong market breadth and expanding list of new 52-week highs.
Key Takeaways for Traders and Investors
Friday’s session provided another constructive signal for the Canadian equity market. The TSX has now posted gains in three consecutive trading sessions and has advanced in four of the past five sessions, indicating improving short-term momentum.
Several technical indicators continue to support a bullish outlook:
- The TSX remains above its 25-day, 50-day, and 200-day moving averages, confirming strength across multiple timeframes.
- Market breadth was exceptionally strong, with advancers outnumbering decliners by more than four to one, suggesting widespread institutional participation.
- New 52-week highs continued to expand while new lows remained limited, reinforcing the market’s underlying strength.
- Mining stocks remain the market’s leadership group, while financials continue to provide important support for the broader index.
- Although trading volume was lighter because of the U.S. market holiday, the broad-based nature of Friday’s advance suggests that the underlying bullish trend remains intact.
Overall, Friday’s trading session strengthened the technical outlook for the TSX. Investors should continue monitoring whether market breadth remains robust and whether leadership broadens beyond the mining sector in the coming weeks. Sustained participation across additional sectors would further improve the prospects for the Canadian equity market during the second half of the year.
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(c) This article is published by The Canadian Vanguard on July 4, 2026
