Canadian Stocks Regain Ground After Initial Pullback But Remain Modestly Lower

(RTTNews) - After coming under pressure early in the session, Canadian stocks have regained ground over the course of the trading day on Tuesday.

The benchmark S&P/TSX Composite Index has climbed well off its worst levels of the day but currently remains down 49.94 points or 0.2 percent at 28,514.51.

The initial pullback on Bay Street may partly have reflected profit taking after the S&P/TSX Composite Index climbed to a new record closing high during last Friday's session.

Renewed trade uncertainty may also have generated some selling pressure after the U.S. Court of Appeals for the Federal Circuit ruled most of U.S. President Donald Trump's global tariffs are illegal.

In a 7-4 decision, the appeals court ruled that the power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.

However, the court delayed implementation of its order until October, giving the Trump administration time to appeal the decision to the Supreme Court.

The subsequent recovery attempt by the markets comes amid a rally by gold stocks, with the S&P/TSX Global Gold Index surging by 2.4 percent as the price of the precious metal jumps to a record high.

Significant strength has also emerged among healthcare stocks, as reflected by the 1.7 percent gain being posted by the S&P/TSX Capped Health Care Index.

On the other hand, technology stocks continue to see considerable weakness on the day, dragging the S&P/TSX Capped Information Technology Index down by 1.4 percent.

Real estate and consumer discretionary stocks are also seeing notable weakness, offsetting the strength in the aforementioned sectors.