Canadian Market Rebounds From Early Setback; Technology, Energy Stocks Rise

(RTTNews) - After opening with a big negative gap and dropping further down into the red Friday morning, the Canadian benchmark S&P/TSX Composite Index recovered gradually and was up modestly above the flat line a little past noon.

Stocks across the board tumbled early on in the session amid fading hopes of an interest rate cut by the Federal Reserve in December following hawkish comments from several officials of the central bank. Lingering concerns about high valuations in the technology sector weighed as well on sentiment.

The S&P/TSX Composite Index, which tumbled to a seven month low to 29,828.52, was up 75 points or 0.25% at 30,328.64 about half an hour past noon.

The Information Technology Capped Index, which tanked nearly 7% early on, is up 1.8% with several top stocks in the sector rebounding strongly. Celestica is up nearly 5.5%. Bitfarms, Constellation Software, Shopify and Descartes Systems Group are gaining 1.3 to 2%.

Energy stocks are the other major contributors to market's strong recovery from early lows. Ces Energy Solutions is rising nearly 8.5%. Peyto Exploration is gaining 5.2%

Athabasca Oil Corporation is climbing up 4.1%. Vermilion Energy, Imperial Oil, Freehold Royalties, Headwater Exploration and Arc Resources are gaining 1.3 to 3%.

Healthcare and communications stocks are weak, while materials, consumer staples, industrials and financials stocks are turning in a mixed performance.

In economic news, data from Statistics Canada showed manufacturing sales in Canada rose 3.3% month-over-month to C$72.1 billion in September, rebounding from a 1% drop in August and exceeding expectations of a 2.8% increase. This marked the highest level since February 2025.

Meanwhile, Canada's wholesale trade rose 0.6% month-on-month to C$85.9 billion in September, the sixth increase in nine months, reversing a 1.2% decline in August and beating initial estimates for stagnation.