Canada’s equity benchmark spent the first quarter stuck in a rut as investors priced the tumult caused by US President Donald Trump’s bombast and tariffs. It’s been on a tear ever since, and strategists expect the surge to persist in 2026.
With four weeks left, the S&P/TSX Composite Index has notched a 26% advance this year, on track for the most since 2009. The Toronto gauge is beating the S&P 500 Index for the first time in a rising market since 2016, outperforming by a whopping 10 percentage points. Adjusted for currency, the gap is even bigger with the Canadian benchmark adding 29% against a 16% gain for the S&P 500.