Canada’s main stock index saw modest gains on Tuesday as gains in mining and tech stocks offset declines in the energy sector. At 10:52 a.m. ET, the S&P/TSX Composite Index rose 43.87 points, or 0.12 per cent, to 35,988.02. The materials sector led the way with a 1.3 per cent increase, driven by rising copper prices and a rebound in gold. Meanwhile, information technology stocks edged up 0.2 per cent, boosted by a 10-per-cent surge in Celestica after the company reported stronger-than-expected third-quarter revenue and profit.
The energy sector, however, lost 1.1 per cent as oil prices turned negative. Investors weighed potential Middle East talks aimed at easing supply disruptions against ongoing Houthi attacks on Saudi Arabia’s infrastructure. Matt Manara, executive vice president and portfolio manager at Avenue Investment Management, noted that while higher oil prices benefit energy stocks, they aren’t necessarily good for the broader economy.
Reuters reported that the U.S. and Canada are working on a deal to ease U.S. tariffs on Canadian steel, which could boost capital markets and bank profits. This week, markets are focused on the U.S. Federal Reserve’s policy meeting, where the central bank is expected to hold interest rates steady. The Bank of Canada meets on Wednesday, with a 78-per-cent chance of a 25-basis-point hike, according to LSEG data.
On Wall Street, the S&P 500 rose 0.2 per cent, pulling within 1.6 per cent of its all-time high. The Dow Jones Industrial Average fell 0.2 per cent, while the Nasdaq composite gained 0.6 per cent. AI-related stocks, including Broadcom, Advanced Micro Devices, and CoreWeave, saw significant gains. General Motors climbed 4.8 per cent after announcing its move from the New York Stock Exchange to the Nasdaq, while JetBlue Airways and Royal Caribbean Group also posted strong gains.