Canadian stocks experienced a slight decline in early Tuesday trading but steadily improved as the day progressed. The S&P/TSX Composite Index, Canada's primary stock market index, managed to recover from its initial lows, finishing the day with a modest increase of 27.81 points or 0.1 percent, at 21,227.87.
This marginal increase allowed the S&P/TSX Composite Index to continue its recent upward trajectory, culminating at its highest closing level since April 2022. The initial decline during the day was largely attributed to profit-taking measures, wherein traders capitalized on recent market gains in light of uncertainty surrounding the Federal Reserve's impending Wednesday monetary policy announcement.
Although it is widely anticipated that the Federal Reserve will maintain the current interest rates, the accompanying statement could significantly influence the rates outlook. Energy stocks played a crucial role in the subsequent market recovery, with the S&P/TSX Capped Energy Index rising by 1.6 percent.
This was largely driven by an increase in crude oil prices, which rose 1.4 percent to $77.82 per barrel for March delivery, a recovery from Monday's 1.6 percent dip to $76.78 per barrel. Conversely, healthcare stocks showed continued weakness, highlighted by a 1.1 percent decline in the S&P/TSX Capped Health Care Index.
