The Canadian equity market demonstrated resilience on 05 February 2026, as the S&P/TSX Composite Index decoupled from a technology-led sell-off in New York to post modest gains. While U.S. indices struggled with a rotation away from high-growth tech stocks, the resource-heavy TSX found support in steadying commodity prices and optimistic earnings projections for the final quarter of 2025.
Market Snapshot: 05 February 2026
| Index / Asset | Value | Change |
|---|---|---|
| S&P/TSX Composite | 32,571.55 | +182.95 (+0.56%) |
| S&P 500 (U.S.) | 6,882.72 | -0.13% |
| NASDAQ (U.S.) | 22,904.58 | -1.27% |
| Canadian Dollar (CAD) | $0.7311 USD | Steady |
TSX Outperforms Amid Tech Turbulence
The Toronto Stock Exchange (TSX) extended its winning streak to a third consecutive session, closing above the 32,564 level. This upward momentum is largely attributed to a “rotation” strategy where investors are shifting capital from expensive U.S. technology firms into Canadian value sectors, specifically energy and materials. Analysts at Edward Jones Canada noted that TSX earnings for Q4 2025 are expected to rise by 12.3% year-over-year, outpacing the projected 10.1% growth for the S&P 500.
Wall Street Faces “AI Fatigue”
In contrast to the TSX, the NASDAQ and S&P 500 faced downward pressure as major tech players reported mixed results. A significant fallout in the semiconductor sector, highlighted by a 17% plunge in AMD shares earlier this week, continued to weigh on investor sentiment. Furthermore, uncertainty regarding the new U.S. Federal Reserve leadership nominee has introduced volatility into the bond and equity markets, causing a “churn” as traders await clarity on future interest rate paths.
Commodities and Alternative Assets
- Precious Metals: Gold and silver experienced a “break in fever,” with prices plunging after a period of intense speculation. Silver, in particular, saw a sharp correction alongside Bitcoin, which dropped toward the $70,000 mark.
- Energy: Stability in oil prices provided a necessary floor for the TSX Energy Index, helping offset the broader global tech slump.
Investor Sentiment: The Reddit (RDDT) Outlook
In the individual equities space, Reddit, Inc. (RDDT) remains a focal point for retail and institutional analysts. Despite recent challenges—including a 6.9% dip due to AI competition concerns—consensus price targets remain bullish. Analysts have set an average 12-month target of $252.39 CAD ($184.50 USD), suggesting a potential upside of over 60% from current levels, provided the company meets its aggressive 31.8% annual earnings growth forecast.
Data compiled from TMX Group, Yahoo Finance Canada, and BNN Bloomberg. All figures in CAD unless otherwise specified.