TSX Reverses Losses, Closes Higher

The S&P/TSX Composite Index reversed its earlier decline to close 0.2% higher at 31,942 on Tuesday as a late-session recovery in major banking and energy stocks offset broader geopolitical uncertainty. Suncor Energy and Imperial Oil led the sector gains with advances of 1.8% and 2.2% respectively while Cenovus Energy jumped 3% as Brent crude climbed back above $104 per barrel amid resurgent supply concerns. Financials also found late support as Royal Bank of Canada rose 0.6% and TD Bank added 0.3% countering the pressure from rising bond yields. However tech and consumer stocks faced significant headwinds with Shopify falling 3.8% and Dollarama plunging 9.6% alongside a 3.8% drop in Constellation Software. Mining equities remained a bright spot as Nutrien surged 5.7% and Franco-Nevada added 2.2% despite earlier volatility.

The S&P/TSX Composite Index fell around 0.6% to below the 31,700 mark on Tuesday as resurgent oil prices pressured the broader outlook for the Canadian economy. Market sentiment soured after Iranian officials denied holding direct talks with Washington to resolve the Middle East conflict which directly contradicted recent optimistic signals from President Trump. This geopolitical friction effectively erased the previous session's relief and reignited stagflationary concerns causing bond yields to climb while weighing on credit demand and major banking stocks. While the resource heavy index remains particularly vulnerable to energy costs the current surge provided a floor for energy equities even as lower gold prices restricted the performance of mining companies. In corporate developments TransAlta Corp drew attention following a stock upgrade to outperform by NBC while Jamieson Wellness Inc moved into focus after analysts initiated coverage with a bullish price target of $43.00.

Futures tracking the S&P/TSX Composite Index were lower on Tuesday as oil prices rebounded and pressed the outlook for the Canadian economy. Energy supply concerns re-emerged after Iran denied holding talks with the US to end the Gulf war, contradicting President Trump's comments that a deal could be reached soon. The renewed Middle East tensions and resulting oil price surge rekindled stagflation worries, lifting bond yields and weighing on credit demand, pressuring major Canadian banks. In contrast, higher oil prices supported energy stocks, while lower gold prices pressured miners. In other news, TransAlta Corp, which operates a fleet of power-generation assets across Canada, came into focus after National Bank of Canada upgraded its stock to "outperform" from "sector perform."