Stock markets move higher as fresh U.S. earnings and fundamentals come into focus

The TMX Group logo is shown in Toronto on Friday, June 28, 2013. THE CANADIAN PRESS/Aaron Vincent Elkaim

Canada’s main stock index finished more than 100 points higher Thursday, helped by gains in the industrials sector, while U.S. markets also rose amid fresh earnings results.  

Mona Mahajan, head of investment strategy at Edward Jones, said investors saw a bit of a lift in the market on Thursday amid the latest batch of corporate earnings.   

“I think the fundamental story somewhat remains intact. In both the U.S. and Canada, we’re expecting double-digit earnings growth this year,” she said. 

Mahajan said the Canadian stock market has continued to be driven by the basic materials sector in 2026 so far, but other areas may also see some growth. 

“As we think about an economy that could be supported by stable or better interest rates by a consumer that is benefiting from perhaps lower mortgage rates and stable inflation, areas like real estate certainly start to make sense,” she said. 

“I think industrials, as we think about re-acceleration on the manufacturing front as well, we could see some activity there.” 

Investors also digested comments from Prime Minister Mark Carney, who said on Thursday that Canada is entering a “new era of relations” with China during a visit to Beijing.

“In general, Canada is trying to reassert itself as a major global trading partner for large economies across the globe (and) not remain as reliant on the U.S. and USMCA in particular. I think it makes sense for the negotiation process to begin,” Mahajan said. 

The S&P/TSX composite index was up 112.45 points at 33,028.92.  

In New York, the Dow Jones industrial average was up 292.81 points at 49,442.44. The S&P 500 index was up 17.87 points at 6,944.47, while the Nasdaq composite was up 58.27 points at 23,530.02.

Wall Street steadied as stocks in the artificial intelligence industry bounced back following an encouraging report from a Taiwanese chip giant.

“In the U.S., tech comprises about 28 per cent of the overall index, so when tech’s having a good day, the index overall tends to do pretty well,” Mahajan said of the S&P 500. 

Nvidia and other formerly high-flying tech stocks helped lift the market after Taiwan Semiconductor Manufacturing Co., a major supplier to the industry, reported a stronger profit for the latest quarter than analysts expected. 

TSMC also said it could boost its investment in equipment to US$56 billion this year to take advantage of the AI boom.

The frenzy around AI has already sent Nvidia and other superstar stocks to dizzying heights, but that created criticism that their prices had shot too high. 

Nvidia was one of the heaviest weights on the S&P 500 Wednesday after sinking 1.4 per cent. But it rose 2.1 per cent after TSMC chief financial officer Wendell Huang said it’s seeing “continued strong demand” in an encouraging signal for the entire AI industry.

TSMC is a crucial player as a major supplier for Nvidia and other giants and as a key customer for ASML and other providers. TSMC’s stock that trades in the United States rose 4.4 per cent, while ASML’s U.S.-listed stock rallied 5.4 per cent.

Earnings reporting season for big U.S. companies continued to pick up pace, meanwhile, with several more big financial companies delivering their results for the last three months of 2025.

BlackRock, the giant that’s now overseeing more than US$14 trillion in investments, rose 5.9 per cent after reporting stronger profit and revenue than analysts expected.

Morgan Stanley climbed 5.8 per cent after likewise delivering stronger profit and revenue than expected. Goldman Sachs rose 4.6 per cent after the investment bank topped analysts’ forecasts for profit but fell short on revenue.

“In general, the financial companies have reported solid earnings. We’re seeing good loan growth, good trading revenues, those financials that have investment banking arms are seeing a little bit of a boost as well,” Mahajan said. 

The Canadian dollar traded for 71.95 cents US compared with 72.06 cents US on Wednesday.

The March crude oil contract was down US$2.80 at US$59.08 per barrel. The February gold contract was down US$12.00 at US$4,623.70 an ounce.

This report by The Canadian Press was first published Jan. 15, 2026. With files from The Associated Press.