The Toronto Stock Exchange's S&P/TSX composite index ended up 34.08 points, or 0.2%, at 21,717.16, after touching its highest intraday level ever at 21,796.16.
Wall Street also gained ground as data showed U.S. retail sales surging 1.7% in October, the largest gain since March.
"Spending is a key driver of economic activity and data is pointing to consumers shrugging off higher prices, potentially leading to a strong holiday shopping season," said Ben Jang, a portfolio manager at Nicola Wealth.
"Technology stocks are leading the charge," Jang added.
The technology group rose 1.3%, helped by a gain of nearly 3% for electronic payment technology company Nuvei Corp.
Industrials advanced 0.5%, while the heavily weighted financial services sector was up 0.3%.
The Toronto market has climbed nearly 25% since the start of the year as higher commodity prices bolstered the shares of resource companies.
Gains for the TSX on Tuesday came as comments from a deputy governor of the Bank of Canada potentially dashed market expectations of an early interest rate hike.
The Canadian inflation report for October, due on Wednesday, could offer further clues on the Bank of Canada's policy outlook.
The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9%, as gold retreated from a five-month peak.
(Reporting by Fergal Smith; Additional reporting by Shashank Nayar in Bengaluru; editing by Jonathan Oatis)
By Fergal Smith
