Canadian Stocks Close Modestly Higher After Recovering From Initial Pullback

(RTTNews) - Canadian stocks recovered from early weakness to end Tuesday's trading modestly higher, extending the upward move seen in the previous session.

The benchmark S&P/TSX Composite Index inched up 37.68 points or 0.1 percent 26,426.64, reaching another new record closing high.

The initial weakness on Bay Street may have reflected concerns about the global economy after the Organization for Economic Co-operation and Development has lowered its global growth forecast for 2025 to 2.9 percent from 3.1 percent.

The Paris-based firm said the outlook across the globe has become challenging due to rising trade barriers and policy uncertainty, which is weighing on consumer confidence and blocking investments.

Energy stocks helped lead the subsequent recovery, with the S&P/TSX Capped Energy Index jumping by 1.5 percent on the day.

The strength among energy stocks came as the price of crude oil extended Monday's surge amid ongoing supply concerns.

Utilities stocks also saw some strength on the day, while consumer staples stocks came under pressure, dragging the S&P/TSX Capped Consumer Staples Index down by 2.1 percent.