Michael Milano, a trader, is seen working alongside his team on the floor of the New York Stock Exchange on Monday, June 23, 2025. (Photo: Richard Drew/AP)
Canada’s stock market closed strong on Monday, with the S&P/TSX composite index rising more than 100 points, lifted mainly by gains in technology and materials. Meanwhile, U.S. markets also rallied, helped by promising economic signals and Tesla’s sharp rise. Falling oil prices, despite recent Middle East tensions, added another twist to the day’s trading.
Tech and Gold Boost TSX
The S&P/TSX composite index climbed 111.79 points, ending the day at 26,609.36. According to Kathrin Forrest, equity investment specialist at Capital Group, tech and mining companies were the main drivers behind the surge. Among tech firms, Shopify stood out with notable performance. In the materials sector, gold remained the star performer.
“Gold continues to make a big impact on TSX returns this year,” said Forrest. The TSX materials index has climbed about 32% so far in 2025, while the gold subindex surged nearly 50%. Overall, the TSX has gained around 7.5% year-to-date, reflecting strong investor confidence in Canada’s resource-rich market.
U.S. Stocks Rise as Optimism Builds
In the U.S., all three major stock indexes posted healthy gains. The Dow Jones Industrial Average rose by 374.96 points to 42,581.78. The S&P 500 climbed 57.33 points to 6,025.17, and the Nasdaq composite gained 183.56 points, closing at 19,630.98.
Tesla played a big role in the S&P 500’s upward move, soaring 8.2% after launching a test of self-driving taxis in Austin, Texas. This project, long championed by Elon Musk, brought renewed excitement to Tesla shares, contributing to the broader rally in U.S. markets.
Positive Economic Data Keeps Wall Street Buoyant
Forrest noted that the U.S. market gains were fueled by solid economic readings. A key data point—the S&P Composite PMI—showed both manufacturing and service sectors stayed above 50, indicating continued expansion.
“These numbers suggest that while growth might be slowing slightly, overall, the U.S. economy is still moving in a positive direction,” Forrest explained.
Oil Dips Despite Middle East Tensions
Oil prices often rise during times of global conflict, especially in the Middle East. On Sunday night, prices did jump briefly by 6% after the U.S. launched airstrikes in Iran. However, that reaction faded quickly as investors waited to see how Iran would respond. By Monday, oil prices had fallen sharply.
The August crude oil contract dropped by $5.33, settling at $68.51 per barrel. Meanwhile, gold prices rose once again, with August contracts gaining $9.30 to close at $3,395.00 an ounce.
Canadian Dollar Slightly Down
The Canadian dollar weakened slightly, trading at 72.70 cents U.S., down from 72.84 cents U.S. on Friday.
