The Canadian Vanguard Stock Market Report Weekend June 26 – 28, 2026 Edition
Markets Pull Back as Chip Stocks Retreat and Rotation Out of Technology Intensifies
The Canadian Vanguard Stock Market Report is updated regularly during the weekend
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The Toronto Market (as at Friday Market Close)
Friday’s Toronto Market Index
The S&P/TSX Composite Index rose 129.79 points, or 0.37%, to close at 34,980.00 on Friday.
The index opened slightly below the previous session’s close and briefly dipped to the 34,800 level before quickly rebounding above the prior close within minutes. It remained in positive territory for the rest of the trading session.
The TSX outperformed its U.S. counterparts, which ended the day lower. Strong buying interest emerged during the final hour of trading, lifting the index to finish just 20 points shy of the 35,000 milestone. The day’s high reached 35,124.
From a technical perspective, the TSX is currently trading just above its 25-day moving average and remains well above both its 50-day and 200-day moving averages, indicating that the broader upward trend remains intact.
Friday’s TSX Market Statistics
Market breadth on the TSX was positive on Friday, with advancing issues outnumbering declining issues. There were 1,231 advancing stocks and 970 declining stocks, resulting in an advance-to-decline ratio of 1.27:1, or approximately six advancers for every five decliners. An additional 155 issues closed unchanged.
The exchange recorded 98 new 52-week highs and 44 new 52-week lows, compared with 177 new highs and 79 new lows recorded on Thursday.
Total trading volume on the TSX reached 452,113,180 shares, down 12% from the 512,084,335 shares traded on Thursday. Trading volume had increased steadily during the three sessions leading up to Wednesday but declined on both Thursday and Friday.
Although market breadth was positive on both Thursday and Friday, the lower trading volume accompanying Friday’s advance suggests somewhat weaker buying participation. Conversely, heavier trading volume occurred on days when market breadth was less favorable. While this divergence does not necessarily signal a change in the market’s overall trend, it warrants close monitoring in the coming sessions. The recent increase in market volatility may also be contributing to these trading patterns.
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Friday’s TSX Toronto Market Wrap-Up Report
The S&P/TSX Composite Index extended its winning streak to two consecutive sessions on Friday, advancing 129.79 points (0.37%) to close at 34,980.00, just 20 points shy of the key 35,000 level.
The index opened slightly below Thursday’s close and briefly dipped to the 34,800 level before quickly recovering. Strong buying interest during the final hour of trading pushed the TSX to an intraday high of 35,124, although the market was unable to sustain a breakout above the 35,000 resistance level. The index has tested this level several times during the week but has yet to establish a convincing close above it.
The TSX also outperformed its U.S. counterparts on Friday, with Canadian equities remaining in positive territory for most of the trading session while U.S. markets finished lower.
From a technical perspective, the TSX continues to trade above its 25-day moving average and remains comfortably above both its 50-day and 200-day moving averages, indicating that the intermediate- and long-term uptrend remains intact despite increased market volatility.
Market Breadth and Trading Activity
Market internals remained constructive. Advancing issues outnumbered declining issues by 1,231 to 970, producing an advance-to-decline ratio of 1.27:1, with 155 issues closing unchanged.
The TSX also recorded 98 new 52-week highs compared with 44 new 52-week lows, reflecting continued leadership among selected stocks.
Trading volume totaled 452.1 million shares, down approximately 12% from Thursday’s 512.1 million shares. While market breadth remained positive for a second consecutive session, the lighter trading volume suggests buying conviction was somewhat less robust. Investors should monitor whether trading volume expands if the TSX makes another attempt to break decisively above the 35,000 resistance level.
Sector Performance
Six of the TSX’s ten major sectors finished the session higher.
Technology led the market with a 3.86% gain, followed by Basic Materials (+1.13%) and Utilities (+0.70%). Industrials and Healthcare also posted modest advances of 0.22% and 0.03%, respectively.
On the downside, Energy (-0.21%) and Telecommunication Services (-0.59%) were the weakest sectors. Energy stocks softened as crude oil prices declined. The market appears to be pricing in a lower geopolitical risk premium as investors become increasingly optimistic that recent diplomatic efforts could reduce tensions in the Middle East and lessen concerns over potential oil supply disruptions.
Company Highlights
BlackBerry Ltd. (BB) was the TSX’s top-performing stock on Friday, climbing 10.33% after surging 19.2% on Thursday. The company’s better-than-expected quarterly earnings, released after Wednesday’s market close, continued to drive strong investor demand. Approximately 9.8 million shares changed hands during Friday’s session.
Shopify Inc. (SHOP) rebounded strongly, gaining 7.31% after declining 2.58% on Thursday. The stock has now advanced in four of the past five trading sessions, suggesting renewed buying momentum. Technically, Shopify appears to be forming the early stages of a cup-with-handle pattern, with approximately $187.20 serving as a potential breakout level. As one of the largest companies in the TSX Technology sector, Shopify’s continued strength could provide additional support for both the sector and the broader index.
In contrast, Celestica Inc. (CLS) significantly underperformed, falling 6.57% (-$33.64) to close at $478.54 on volume of 375,100 shares. The stock has now declined in eight of the past ten trading sessions and is trading below both its 25-day and 50-day moving averages, indicating weakening short-term momentum. Until the stock establishes a stronger technical base, investors may wish to exercise caution before initiating new positions.
Bombardier Inc. (BBD.B) added 2.40% on volume of 358,200 shares, extending its recent positive momentum.
Precious and industrial metals miners followed Thursday’s rally with more modest gains. Franco-Nevada Corp. rose 2.33%, while Agnico Eagle Mines and Wheaton Precious Metals Corp. gained 0.44% and 0.23%, respectively, as the sector continued to benefit from supportive precious metals prices.
Key Takeaways for Traders and Investors
- 35,000 remains the market’s key technical hurdle. The TSX has repeatedly tested this level but has yet to produce a convincing breakout. A decisive close above 35,000 on stronger trading volume would likely improve the short-term technical outlook.
- The primary trend remains bullish. The TSX continues to trade above its 25-day, 50-day, and 200-day moving averages, indicating that the broader uptrend remains intact.
- Market breadth continues to support the rally. Advancers exceeded decliners for a second straight session, suggesting buying interest remains reasonably broad despite increased volatility.
- Volume will be an important confirmation signal. The market advanced on lighter trading volume for a second consecutive session. A sustained rally is generally more convincing when accompanied by increasing participation.
- Technology remains the market leader. BlackBerry and Shopify provided significant leadership on Friday, while Celestica’s recent weakness demonstrates that careful stock selection remains essential, even within leading sectors.
Outlook
The TSX heads into next week with improving momentum but faces an important technical test near the 35,000 resistance level. Positive market breadth and the index’s position above its major moving averages continue to favor the bulls. However, traders should watch for stronger trading volume on any breakout attempt, as expanding participation would provide greater confidence that the TSX is ready to establish new highs.
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The US Markets (as at Friday Market Close)
Friday’s U.S. Market Indexes
U.S. equity markets ended Friday with mixed performance as investors remained cautious following recent market gains.
The Dow Jones Industrial Average slipped 44.51 points (-0.09%) to close at 51,876.11. The S&P 500 edged lower by 3.47 points (-0.05%) to finish at 7,354.02, while the Nasdaq Composite declined 60.99 points (-0.24%) to close at 25,297.62. In contrast, the Russell 2000 Index outperformed the major benchmarks, rising 2.23 points (0.07%) to finish at 3,010.08.
With the exception of the Russell 2000, all of the major U.S. indexes closed modestly lower. The declines were relatively mild, indicating that selling pressure remained limited despite a lack of strong buying interest.
Small-cap stocks continued to demonstrate relative strength, with the Russell 2000 extending its recent leadership among the major indexes. The rotation into smaller-cap companies has coincided with a gradual decline in U.S. Treasury yields over the past two sessions. Lower bond yields typically improve the outlook for interest rate-sensitive sectors and smaller companies, which generally benefit from lower financing costs.
The Nasdaq Composite was Friday’s weakest major index, declining for a fifth consecutive trading session. Continued weakness in technology and growth stocks bears watching, particularly if it persists while small-cap stocks continue to outperform.
Key Takeaways for Traders and Investors
- Small-cap leadership remains intact. The Russell 2000 continues to outperform the larger-cap indexes, suggesting that investors are rotating toward smaller companies.
- Falling bond yields are providing support. Lower Treasury yields have improved expectations for interest rate-sensitive sectors, a trend that could continue to benefit small-cap stocks if yields remain under pressure.
- Technology stocks are showing signs of fatigue. The Nasdaq has now declined for five consecutive sessions, indicating short-term weakness in growth stocks despite the broader market remaining relatively resilient.
- The overall market remains stable. Friday’s declines were modest, with no evidence of broad-based selling. Investors should continue monitoring sector rotation and interest rate trends for clues about market leadership in the coming weeks.
Friday’s U.S. Market Statistics
New York Stock Exchange (NYSE): Market breadth on the New York Stock Exchange (NYSE) remained positive on Friday, with advancing issues comfortably outnumbering declining issues. There were 2,731 advancing stocks compared with 1,732 declining stocks, while 467 issues closed unchanged. This produced an advance-to-decline ratio of 1.57:1, or approximately three advancing stocks for every two declining stocks.
The NYSE recorded 342 new 52-week highs and 276 new 52-week lows, a notable improvement from Thursday’s 205 new highs and 226 new lows. The increase in new highs suggests that buying interest remains healthy across a broad range of stocks despite the relatively flat performance of the major market indexes.
Trading activity increased substantially. Total NYSE volume reached 9.76 billion shares, representing a 71% increase from Thursday’s 5.69 billion shares. The combination of strong market breadth and significantly higher trading volume indicates that investors remained active and that buying interest extended beyond a handful of large-cap stocks.
NASDAQ: Market breadth was also constructive on the NASDAQ, where advancing stocks outnumbered declining stocks by approximately two to one. The exchange recorded 3,134 advancing issues and 1,777 declining issues, producing an advance-to-decline ratio of 1.76:1, with 339 issues closing unchanged.
The NASDAQ posted 324 new 52-week highs and 243 new 52-week lows, compared with 306 new highs and 351 new lows on Thursday. The decline in new lows, together with the increase in new highs, reflects improving participation beneath the surface despite the recent weakness in the technology-heavy Nasdaq Composite Index.
NASDAQ trading volume climbed sharply to 17.74 billion shares, an increase of approximately 72% from Thursday’s 10.28 billion shares, indicating elevated investor activity.
From a technical standpoint, the Nasdaq Composite Index remains below its 50-day moving average, suggesting that short-term momentum in technology and growth stocks has weakened. At the same time, the combination of positive market breadth and higher trading volume points to continued investor participation, with capital appearing to rotate toward sectors outside of technology rather than leaving the equity market altogether.
Key Takeaways for Traders and Investors
- Market breadth remained healthy on both exchanges. Advancing stocks significantly outnumbered declining stocks on both the NYSE and NASDAQ, indicating that buying interest remains broad despite mixed performances from the major indexes.
- Trading activity strengthened considerably. Both exchanges recorded trading volumes more than 70% higher than Thursday’s levels, suggesting increased investor participation.
- Sector rotation remains a key theme. While the Nasdaq Composite continues to underperform and remains below its 50-day moving average, improving market breadth suggests investors are rotating capital into sectors beyond large-cap technology rather than exiting equities altogether.
- Watch for confirmation of the rotation. If technology stocks continue to weaken while financials, industrials, energy, materials, and small-cap stocks strengthen, the current rotation could become more established. However, market leadership can change quickly, and technology could regain leadership if investor sentiment shifts.
- Remain flexible and disciplined. Rather than committing heavily to one sector, traders and investors should continue monitoring price action, relative strength, and trading volume. Maintaining disciplined risk management and being prepared to adjust portfolios as market leadership evolves remain essential in the current environment.
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(c) This article is published by The Canadian Vanguard on June 27, 2026
