Canadian Stocks Seeing Modest Weakness Following Recent Strength

After trending higher over the much of the past two weeks, Canadian stocks have shown a modest move back to the downside during trading on Tuesday.

Currently, the benchmark S&P/TSX Composite Index is off its lows of the session but still down 38.29 points or 0.2 percent at 21,161.77.

The modest pullback on the day may partly reflect profit taking after the S&P/TSX Composite Index ended the previous session at its best closing level since April 2022.

Traders may be cashing in on some of the recent strength in the market amid uncertainty ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but the accompanying statement could have a significant impact on the outlook for rates.

Optimism about a March rate cut has faded recently, with many economists now suggesting the Fed will wait until May to begin lowering rates.

Healthcare stocks have shown a significant move to the downside on the day, dragging the S&P/TSX Capped Health Care Index down by 1.2 percent.

Commercial real estate and consumer staples stocks are also seeing some weakness, while energy stocks have moved higher along with the price of crude oil.

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