Canadian Stocks Move Modestly Higher After Early Pullback

(RTTNews) - Canadian stocks gave back ground in early trading on Tuesday but moved modestly higher over the course of the session.

The benchmark S&P/TSX Composite Index bounced off its early lows and into positive territory, closing up 27.81 points or 0.1 percent at 21,227.87.

With the modest increase, the S&P/TSX Composite Index extended a recent upward trend, reaching its highest closing level April 2022.

The early pullback on the day partly reflected profit taking, as traders cashed in on some of the recent strength in the market amid uncertainty ahead of the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but the accompanying statement could have a significant impact on the outlook for rates.

Energy stocks helped lead the subsequent rebound on Bay Street, with the S&P/TSX Capped Energy Index surging by 1.6 percent.

The rally by energy stocks came as the price of crude oil for March delivery jumped $1.04 or 1.4 percent to $77.82 a barrel after tumbling $1.23 or 1.6 percent to $76.78 a barrel on Monday.

Meanwhile, notable weakness remained visible among healthcare stocks, as reflected by the 1.1 percent loss posted by the S&P/TSX Capped Health Care Index.