Traders work on the floor at the New York Stock Exchange in New York, Tuesday, Jan. 6, 2026. (AP Photo)
Canadian and U.S. stock markets climbed to fresh records on Tuesday, extending early-year momentum as investors digested geopolitical developments involving Venezuela and a rally in commodities.
Canada’s main benchmark pushed deeper into uncharted territory, supported by gains in basic materials. Analysts said the move reflected a mix of seasonal optimism and global uncertainty rather than a single catalyst.
“It’s difficult to read the first few sessions of the year,” said portfolio manager John Zechner. “Sometimes markets rise simply because money comes back to work in January.”
Commodities Lift Canadian Shares
The S&P/TSX composite advanced sharply, helped by a surge in gold prices. February gold futures jumped more than US$40 an ounce, boosting mining and materials stocks.
Zechner said geopolitical tension is often a driver for safe-haven assets. He pointed to the recent U.S. military action in Venezuela and its broader implications.
“When a sovereign leader is removed, markets react quickly,” he said. “That uncertainty is clearly feeding into gold.”
Despite the rally in precious metals, energy stocks were mixed. Some major Canadian oil producers slipped, while others posted modest gains. Crude oil prices edged lower, reflecting skepticism about how quickly Venezuelan oil output could be restored.
Venezuela Developments in Focus
Markets have been closely watching fallout from U.S. actions in Venezuela. After the military operation, Donald Trump announced plans to place Venezuela’s oil industry under American company control.
Investors appeared to price in future possibilities quickly, even as analysts cautioned against optimism.
“The market may be getting ahead of itself,” Zechner said, noting the long-standing infrastructure and operational challenges facing Venezuelan oil production.
Wall Street Rides Tech Rebound
U.S. markets also reached new highs, led by renewed strength in big technology stocks. After a soft finish to 2025, buyers returned to the sector.
The Dow Jones Industrial Average jumped sharply, while the S&P 500 notched another all-time high. The Nasdaq also posted solid gains.
Amazon rose strongly, helping offset declines elsewhere, including a drop in Apple shares. Micron Technology surged into double-digit territory, adding further momentum.
Nvidia, often a market bellwether, traded unevenly and ended slightly lower.
AI and CES in the Spotlight
Artificial intelligence remains a central theme for investors in 2026. Tech stocks were major drivers of last year’s rally, and markets are watching closely for updates on corporate AI spending.
Attention is now turning to the annual CES technology show in Las Vegas, where companies are expected to showcase new AI-driven products and strategies.
Currency Snapshot
The Canadian dollar weakened slightly, trading just above 72.5 cents U.S., as investors balanced commodity strength against global uncertainty.
With markets starting the year on a strong footing, analysts say sentiment will hinge on how geopolitical risks and corporate earnings unfold in the weeks ahead.
