The TMX Market Centre in Toronto. (Photo: Paige Taylor White / The Canadian Press)
Canada’s main stock index wrapped up Tuesday on a positive note, thanks to a jump in oil prices, even as major U.S. markets slipped into the red.
The S&P/TSX composite index gained 134.46 points, finishing the day at 27,539.88.
According to Angelo Kourkafas, senior global investment strategist at Edward Jones, “It’s been a mixed day overall, but Canada’s TSX stood out because of the strong support from oil.” He explained that rising oil prices gave the Canadian market a lift, especially since the energy sector plays a significant role in the TSX.
Oil prices climbed after U.S. President Donald Trump announced a tighter deadline for Russian President Vladimir Putin to halt military actions in Ukraine. Instead of the previous 50-day period, Trump now demands a ceasefire within 10 to 12 days. The political tension pushed crude oil prices up, leading to a rally in energy stocks.
The September crude contract rose by $2.50, closing at $69.21 per barrel.
Tech and Energy Drive TSX Gains
Alongside the energy sector, other Canadian companies also saw gains. Celestica Inc., a tech firm based in Toronto, saw its shares surge by 17% after reporting strong second-quarter earnings and raising its outlook for the full year.
However, not all Canadian stocks ended on a high. Air Canada shares dropped sharply—down 12.3%—after the airline released its latest results. The company revealed a shift in strategy, reallocating flight capacity to international destinations due to weaker demand for U.S. travel among Canadians.
“Travel to the U.S. hasn’t picked up as expected, and Air Canada, like other airlines, is feeling the impact of trade and travel trends,” Kourkafas noted.
U.S. Markets Dip After Record Streaks
South of the border, U.S. markets closed lower. The Dow Jones Industrial Average fell 204.57 points to 44,632.99. The S&P 500 dropped 18.91 points to 6,370.86, and the Nasdaq shed 80.29 points to end at 21,098.29.
This was the first decline for the S&P 500 after six consecutive record-high closes. The Nasdaq also pulled back slightly from its all-time high.
Trade Tensions Still Linger
Trade concerns remain in the spotlight. With an August 1 deadline approaching to resume paused U.S. tariffs, markets are watching closely. Kourkafas said investors are “cautiously optimistic” thanks to recent trade progress between the U.S., European Union, and Japan.
But Canada’s trade talks still appear bumpy, with no breakthrough yet.
The recent U.S.-EU agreement imposes a 15% tariff on most imports, including European cars, with no exemptions for goods like steel or pharmaceuticals.
What’s Ahead?
Looking forward, Kourkafas believes some market bumps may lie ahead. He said, “We’ve had a rare run—strong gains with very little volatility. That won’t last forever.” However, he remains hopeful that by 2026, there will be clearer trade terms, lower interest rates, and continued profit growth from companies.
Currency & Commodities
- The Canadian dollar slipped slightly to 72.62 cents U.S., down from 72.87 the day before.
- Gold prices rose $14, with the August contract ending at $3,324 per ounce.
