04:18 PM EST, 11/24/2025 (MT Newswires) -- The Toronto Stock Exchange closed sharply higher on Monday adding close to 700 points over the past two sessions, buoyed by higher commodities today, but Rosenberg Research is cautioning investors about potential volatility over a holiday-shortened week in the United States and an AI boom that "masks weakness elsewhere".

The S&P/TSX Composite Index closed up 443.70 points, or 1.5%, to 30,604.35, adding to the 254 points gained Friday. However even after the gains the index is still more than 200 points below a record close of 30,827.58 struck on Nov.12. Most sectors were higher, led by Info Tech, up 5.5%, and Base Metals, up near 3%. In contrast, Industrials and Telecoms reported modest losses.

Of commodities, gold traded higher late afternoon Monday on recovering hopes the Federal Reserve will cut interest rates at next month's meeting of the central bank's policy committee. Gold for February delivery was up $50.60 to US$4,166.60 per ounce.

Also, oil traded higher following three losing sessions as traders regained their appetite for risk following last week's brief market stutter on concerns tech stocks were due for a correction. West Texas Intermediate oil for January delivery closed up $0.78 to US$58.84 per barrel, while January Brent oil closed up $0.81 to US$63.37.

But highlighting reason for caution among investors, Rosenberg Research in its 'Breakfast With Dave' note, noted trading activity typically is light over the U.S. Thanksgiving holiday week. It noted with markets closed on Thursday for the holiday and then only open until 1:00 p.m. ET on Friday, "this means the recent wide gyrations in this increasingly volatile market are very likely to persist". The research did note we get key U.S. data on Tuesday (retail sales, PPI, consumer confidence, and pending home sales) and a slate of retail sector reports on how the holiday shopping season is playing out.

In the same note Rosenberg Research said the AI boom "masks weakness elsewhere". Strip out all the AI and related business spending so far this year, and the rest of the capex space has posted a 3% annualized volume decline, it added.

The research also noted while AI use is widespread, it is not yet boosting profits. In keeping with the KPMG survey of Canadian businesses that it highlighted last week, a McKinsey study that in the United States, 80% of firms state they have deployed A.I. technologies, but get this: 80% commented that these new technologies had "no significant bottom-line impact.