A person is seen walking by the TMX Market Centre in Toronto on Wednesday, September 11, 2024. (Photo: THE CANADIAN PRESS/Paige Taylor White)
Canada’s main stock index drifted through Monday’s trading session, ending the day with barely any gain as investors moved their money into safer stocks. Meanwhile, Wall Street presented a mixed picture with tech stocks continuing to climb.
The S&P/TSX composite index closed just 2.99 points higher at 27,317.00. While the index technically ended in the green, market experts say this minor uptick hides a cautious undertone.
“There’s a lot of hesitation in the air,” explained Kevin Burkett, portfolio manager at Burkett Asset Management in Victoria. He believes the market’s surface-level stability doesn’t reflect the deeper concerns many investors have. Burkett pointed out that although some stocks are doing well, many others are under pressure as traders shy away from riskier bets.
Safer Stocks Rise While Riskier Names Slide
A closer look at Monday’s market shows a clear preference for defensive stocks—companies considered more reliable during uncertain times. Shares of Alimentation Couche-Tard Inc. rose 1.64%, helped by news that the company will restart its share buyback plan. This move followed its decision to end efforts to acquire the owner of the 7-Eleven chain.
Another standout performer was NovaGold Resources Inc., which surged nearly 9%. In contrast, Thomson Reuters Corp., more focused on services, saw its shares dip over 3%.
Confidence Remains Shaky Despite Reports
The TSX’s tiny gain came alongside new updates from the Bank of Canada. The reports noted that uncertainty around international tariffs continues to make both consumers and businesses uneasy. However, fears about the worst possible trade scenarios are starting to ease slightly.
U.S. Markets Split as Tech Keeps Climbing
Across the border, the stock market showed a mixed performance. The Dow Jones slipped slightly by 19.12 points to close at 44,323.07. Meanwhile, the S&P 500 inched up 8.81 points to 6,305.60, narrowly surpassing its all-time high. The Nasdaq continued its upward climb, gaining 78.52 points to close at 20,974.1—up 0.4% and once again setting a new record.
Burkett noted that the U.S. markets are reaching these highs during a relatively quiet summer stretch, despite ongoing uncertainty around global trade.
Trade Talks Cast a Shadow on Outlook
Currently, many U.S. tariffs remain in limbo as President Donald Trump extended deadlines for negotiations. All eyes are now on August 1, the next major deadline for these discussions. Investors are watching closely, hoping for signs of progress.
“There’s definitely a nervous wait-and-watch atmosphere,” Burkett added. “Even though earnings look good, there’s still a lot of unease about how these trade talks will unfold.”
Oil, Gold, and Currency Movements
The Canadian dollar traded slightly higher at 73.03 cents US, up from 72.89 cents US on Friday.
Oil prices were down marginally, with the September crude contract falling 10 cents to settle at US$65.95 per barrel. Gold, on the other hand, soared—August contracts jumped by US$48.10 to reach US$3,406.40 per ounce, reflecting growing demand for safe-haven assets.
