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“Our views are still, the market’s in a pretty good place here. S&P 500 Index is right back at all-time highs. The TSX is turning up against all-time highs, so markets are in a pretty good spot,” Mike Archibald, vice-president and portfolio manager with AGF Investments Inc., said in an interview. 

“Sentiment has got back to a pretty constructive spot as well for many market participants.” 

Archibald said gains in the consumer cyclicals were driven by big moves in some of the “beaten-up names.” He highlighted auto parts maker Magna International Inc., which gained 7.77 per cent. 

The CEOs of Ford Canada, Stellantis Canada and GM Canada met with Prime Minister Mark Carney in Ottawa today, during which the Prime Minister’s Office said the group discussed the need to build up a made-in-Canada supply chain.

In New York, the Dow Jones industrial average was down 10.52 points at 44,484.42. The S&P 500 index was up 29.41 points at 6,227.42, setting a record for the third time in four days. Meanwhile, the Nasdaq composite was up 190.24 points at 20,393.13.

Archibald said that stock markets were driven by two main factors: a trade deal between the U.S. and Vietnam and U.S. President Donald Trump’s tax bill. 

Trump said that under the new trade deal between the U.S. and Vietnam, U.S. products sold in the country will face zero tariffs and Vietnamese-made goods will face a U.S. tariff of 20 per cent.

“You’ve seen a nice rally in a lot of the apparel-oriented names. So you can think of things like Nike; closer to home (would be) something like Aritzia. Companies that produce products in Southeast Asia,” Archibald said. 

Nike Inc. shares rose 4.06 per cent on Wednesday, while shares of Vancouver-based Aritzia Inc. gained 4.82 per cent. 

Republican leaders in the U.S. House of Representatives are sprinting toward a Wednesday vote on Trump’s tax and spending cuts package, determined to seize momentum from a hard-fought vote in the Senate while essentially daring members to defy their party’s leader and vote against it. It’s a risky gambit designed to meet Trump’s demand for a July 4 finish.

“I think the general consensus is that the bill is going to get passed. There may just be a little finagling that has to go on between now and when the final passage happens,” Archibald said. 

Going forward, he said he is optimistic regarding the Canadian economy and likes Canadian bank stocks. 

“The Canadian economy is not nearly in as big a challenge as many people think. The financials are, in many cases, hitting all-time highs, not a backdrop that would necessarily be occurring if Canada were going into an economically challenged situation. 

“We continue to believe banks in Canada offer a good opportunity here,” Archibald said.

The Canadian dollar traded for 73.41 cents US compared with 73.30 cents US on Monday. 

The August crude oil contract was up US$2.00 at US$67.45 per barrel, while the August gold contract was up US$9.90 at US$3,359.70 an ounce.

This report by The Canadian Press was first published July 2, 2025

— With files from The Associated Press. 

Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:ATZ, TSX:MG)