Just noticed the Canadian market had a pretty solid rally recently, and it's mainly because of two things hitting at the same time - a bunch of earnings beats and some encouraging US CPI data that came in softer than expected. That kind of combo always gets people excited about rate outlook.

The materials and consumer discretionary stocks led the charge. Magna International was the standout, jumping something like 18% after their quarterly numbers crushed expectations. A few other names like Aritzia and Canadian Tire moved up nicely too. Mining stocks across the board were up 6-8% range - the whole sector caught a bid.

Energy and industrials also had a good day. Enbridge reaffirmed its cash flow guidance for 2026 which seemed to help, and a lot of the oil names benefited from the broader market sentiment. Hydro One and some utility plays ticked up after reporting solid quarter results.

What really drove the mood though was that US CPI data coming in lower than forecast. Headline inflation only rose 0.2% month-over-month instead of the expected 0.3%, and the annual rate dropped to 2.4% from 2.7%. That kind of US CPI data typically signals the Fed might have more room to be patient on rates, which is good for risk assets. Even the core CPI data was reasonable at 2.5% annual.

Canadian auto registrations dipped a bit in the recent period, but that didn't seem to weigh on sentiment much given everything else going on. Overall it was one of those days where earnings optimism and macro tailwinds from US CPI data just aligned perfectly.