Toronto, May 25, 2026, 16:39 EDT
- S&P/TSX Composite ended at a new record, settling at 34,830.89 after rising 1%.
- Tech stocks and metal miners were up. Energy names trailed after crude declined.
- Trading was thin in North America with the U.S. on holiday, though Canadian exchanges stayed open.
Tech and metal miners pushed Canada’s main stock index to a fresh record close Monday, as traders looked to progress on a possible U.S.-Iran peace deal to help pull down oil prices and chill inflation fears. The S&P/TSX Composite Index ended the session up 359.53 points, or 1%, at 34,830.89.
The TSX has seen mixed forces, with strong oil prices lifting energy names, but also adding to inflation and rate worries. Oil sliding can hit drillers, but may give a lift to banks, growth names and miners if it cools bond yields, which set the bar for government debt returns.
The move happened during light North American trading. U.S. markets were closed for Memorial Day, but Canadian exchanges stayed open. Special settlement rules applied to U.S.-dollar issues.
Brent crude fell sharply, losing almost 7% to hit $96.30 a barrel in afternoon trading as traders focused on the Strait of Hormuz amid the Middle East standoff. Reuters said optimism over possible movement between Washington and Tehran hit oil prices, though officials cautioned that no quick agreement was likely.
“There have been repeated false hopes,” Brian Madden, chief investment officer at First Avenue Investment Counsel, told Reuters. He said “even a non-zero chance the conflict ends” was enough to send stocks up and push oil lower. Reuters
Materials stocks, including miners, moved higher as gold prices climbed. UBS analyst Giovanni Staunovo told Reuters, “financial assets are strongly influenced by oil prices.” Gold is getting support on hopes that falling crude prices may make it easier for U.S. rates to come down. Reuters
Tech gave support again. The TSX leaned on the sector Friday after a surge from BlackBerry, helping the index notch its strongest close since March. Allan Small at iA Private Wealth said at the time that investors were looking to the tech sector.
Energy lagged, hit by weaker crude. That pulled on Canadian Natural Resources and Suncor. Miners like Agnico Eagle, Barrick, and Wheaton Precious Metals picked up some slack. Trading Economics said financials held steady, with investors watching for results this week from Royal Bank of Canada, Toronto-Dominion Bank and Bank of Montreal.
Loonie was up 0.1% at 1.3800 to the U.S. dollar as risk sentiment picked up and the greenback slipped. Canadian two-year yields stuck well under U.S. counterparts, pointing to a big gap in rate bets between the two countries.
Bank of Canada policy is still in the background. Its key overnight rate target was at 2.25% after the April 29 decision. The next rate decision is set for June 10.
The rally looks shaky. Rory Johnston, who runs Commodity Context, told Reuters talks have “collapsed on the details” before. UBS’s Staunovo said flows through Hormuz “remain restricted.” If supply doesn’t loosen or talks break down, crude could bounce back, bringing inflation worries and dulling Monday’s record close. Reuters
Trade risk hasn’t gone away. U.S. Trade Representative Jamieson Greer said last week the first formal USMCA talks with Mexico are set for this week in Mexico City, where regional content rules and economic security will be discussed. Canada’s banks, autos, and industrials tie the TSX to North American trade policy.
