TSX Gains on Tech Surge, Trade Deal Uncertainty

Canada's main stock index, the S&P/TSX Composite, has shown modest gains recently, driven primarily by strong performances in technology shares amid investor focus on upcoming trade deals with the U.S. ahead of President Donald Trump's August 1 tariff deadline. Technology stocks led the rally, with companies like Celestica reporting better-than-expected earnings and raising their 2025 outlook, boosting investor confidence. Despite initial optimism from a new European Union-U.S. trade agreement, concerns linger over the increased tariffs on European exports to the U.S. compared to pre-Trump levels. Market participants are also closely watching corporate earnings in both Canada and the U.S., with a majority of S&P 500 companies beating expectations, although some sectors such as telecoms and financials showed weakness. President Trump's consideration of a higher 'world tariff' rate on countries without trade agreements has added to market uncertainties, while Canadian officials emphasize ongoing intense trade negotiations. Overall, investor sentiment remains cautious but optimistic as earnings reports and trade developments unfold.