Canada’s main stock index rose to another record high on Tuesday, benefiting from a global rotation out of semiconductor stocks into sectors more favourable for the domestic market.
The S&P/TSX Composite Index ended up 181.56 points, or 0.5%, at 35,749.70, eclipsing Monday’s record closing high.
The S&P 500 also rose as gains in Boeing and Coca-Cola helped offset tumbling chip stocks ahead of quarterly reports from Apple and other tech companies this week.
“It’s more of a rotation in the market,” said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James, adding that investors were shifting out of semiconductor stocks into financial and software stocks.
The technology sector rose 5.1%, with shares of Celestica adding 9.5% after the electronic equipment firm beat earnings estimates. Constellation Software was another standout, adding 6.4%.
Heavily weighted financials rose 1.1% and consumer staples ended 2% higher.
Investors were awaiting an interest rate decision by the Federal Reserve on Wednesday. Traders see a 71% probability that the central bank will leave rates unchanged and a 29% chance of a 25-basis-point rate hike, according to CME’s FedWatch tool.
“The Fed meeting tomorrow could probably dictate where we go from here,” Dehal said.
The materials group, which includes metal mining shares, was a drag, falling 1.6%, as the price of gold dropped.
Oil also lost ground, with U.S. futures settling 4.1% lower at US$79.26 a barrel, on cautious hopes that the pause in fighting between the United States and Iran will lead to talks to end the war. The TSX energy sector was down 1%.
Global markets have been volatile this month as investors worry that Alphabet, Microsoft, Amazon and other technology heavyweights may be overspending on AI data centers as they race to dominate the emerging technology.
Microsoft rose 1.1% ahead of its earnings report on Wednesday, while Amazon dipped 0.2% ahead of its results on Thursday. Apple climbed almost 1% to US$340.08. It hit a session high of US$342.89, briefly lifting its stock market value to US$5 trillion for the first time. The iPhone maker reports its results on Thursday.
Chipmakers that have benefited from heavy AI spending added to recent losses, with the PHLX index losing 4.5%. It has fallen about 25% from its record-high close on June 22, and it remains up 56% in 2026.
The S&P 500 health-care index jumped 2.4%, the consumer staples index added 2% and the materials index rose 1.7%, while declining chipmakers kept the tech index down 1.4%.
“What has been behind the move into these non-tech names? Part of it is value,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “GDP is solid, the labor market continues to churn along and, in a lot of places, there’s evidence that consumer spending is reaccelerating.”
Coca-Cola rallied 5% after the beverage company raised its annual revenue and profit forecasts. Boeing jumped 4.8% after the airplane maker generated positive free cash flow as its turnaround plans gained momentum.
The S&P 500 climbed 0.21% to end the session at 7,428.78 points.
The Nasdaq declined 0.22% to 24,876.91 points, while the Dow Jones Industrial Average rose 1.03% to 52,747.32 points.
Corning tumbled 12% after third-quarter sales forecasts missed estimates, while contract research firm IQVIA Holdings jumped 14% after lifting its annual profit forecast.
Analysts on average expect S&P 500 aggregate second-quarter earnings to jump 39% from a year ago, with AI-related stocks accounting for much of that growth, according to LSEG I/B/E/S.
Advancing issues outnumbered falling ones within the S&P 500 by a 2.5-to-one ratio. The S&P 500 posted 63 new highs and one new low; the Nasdaq recorded 167 new highs and 207 new lows. Volume on U.S. exchanges was in line with recent sessions, with 17.2 billion shares traded, compared to an average of 17.4 billion shares over the previous 20 days.
Reuters, Globe staff