TSX Dips as Energy Weighs on Index Amid Tech Gains

The TSX Composite Index declined on Monday, dropping 28.16 points to close at 35,474.49, as lower oil prices weighed on energy stocks. While technology shares saw gains, limiting overall losses, investors also reacted to economic data and shifting interest rate expectations. The Canadian dollar rose slightly to 70.21 cents U.S.

Among notable company news, Suncor Energy agreed to sell its interests in three offshore oil assets to Ithaca Energy for $1.2 billion in upfront cash. Suncor shares fell 31 cents to $98.85. Cenovus Energy announced it would acquire Athabasca Oil in a cash-and-stock deal valuing the company at $5.7 billion. Cenovus shares dropped $1.57, or 3.4%, to $44.69, while Athabasca’s shares surged $1.51, or 14.3%, to $12.09.

On the TSX, all but one of the 12 subgroups lost ground, led by health-care (-1.6%), telecoms (-1.2%), and industrials (-0.9%). Information technology was the sole gainer, rising 1%. Meanwhile, U.S. markets saw the NASDAQ Composite hit a fresh all-time high, with tech stocks like SpaceX, Meta, Microsoft, Nvidia, and Tesla leading the rally. The Dow Jones Industrials fell 101.51 points, while the S&P 500 gained 32.97 points.

Bond yields advanced, with the 10-year Treasury note yield rising to 5.298% and the 30-year yield climbing to 5.659%. Traders digested the Institute for Supply Management’s report on economic growth in the services sector, which showed the Purchasing Manager’s Index grew 54.9% in September. Oil prices inched up to $91.66 per barrel, and gold prices progressed to $4,166.90 per ounce.