Executive Summary
The S&P/TSX Composite advanced 294.84 points, or 0.84%, over the week ending July 3, 2026, closing at 35,274.84. The index posted gains in four of five sessions, with the largest daily advance of 0.88% occurring on the final day. The move lifted the benchmark to its highest close since the record set on June 16.
Weekly Drivers
- Weaker-than-expected U.S. June jobs data reduced expectations for Federal Reserve rate hikes and supported precious metals prices.
- Gold and copper prices rose, lifting mining equities and the materials sector by 2.4% on the week.
- Energy shares received support from stable oil prices amid easing geopolitical concerns.
- Financials advanced modestly as lower rate-hike odds eased pressure on bank margins.
Sectors & Breadth
Materials led weekly performance with a 2.4% gain, followed by gains in nine of the ten major sectors. Energy, financials, and industrials also contributed positively. Breadth was broad, with the majority of constituents participating in the advance rather than a narrow group of large-cap names driving the index higher.
What to Watch
- U.S. inflation and retail sales data scheduled for the week ahead may influence rate expectations.
- Bank of Canada policy communications and any updates on domestic growth indicators.
- Earnings reports from major Canadian financial and resource companies.
- Movements in commodity prices, particularly gold and crude oil.
Capital-Flow Context
Foreign investors purchased C$46.9 billion of Canadian securities in April 2026, the largest monthly inflow since October 2025, with the bulk directed to government bonds. Equity inflows were more modest at C$5.6 billion. Canada's net international investment position stood at C$1,360.5 billion at the end of Q1 2026, reflecting ongoing foreign interest in Canadian assets amid commodity price strength.