TSX Rises as Weak GDP Fuels Dovish BoC Bets

2026-05-29 20:26 By Isabela Couto 1 min. read

The S&P/TSX Composite Index rose 0.7% to close at 34,759 on Friday as weak GDP data reinforced expectations of a dovish Bank of Canada.

Canada's economy unexpectedly contracted in the first quarter of 2026 from a year earlier, marking a second consecutive quarter of annual decline.

The data strengthened expectations that the BoC will not rise rates soon, with markets broadly anticipating a hold at the June 10 meeting.

Expectations of a dovish BoC, and progress toward a US-Iran peace deal pushed bond yields lower and eased concerns about higher borrowing costs.

Both parts agreed to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, although the deal still requires approval from US President Trump.

In finance, RBC was up 1.5% and Great-West Lifeco gained 1%.

Gold prices rose for a second consecutive session, lifting miners such as Agnico Eagle (+3.2%) and WPM (+3.3%).

Tech stocks also outperformed, with Shopify rising 3.8% and Celestica surging 10.2%.



News Stream
TSX Rises as Weak GDP Fuels Dovish BoC Bets
The S&P/TSX Composite Index rose 0.7% to close at 34,759 on Friday as weak GDP data reinforced expectations of a dovish Bank of Canada. Canada's economy unexpectedly contracted in the first quarter of 2026 from a year earlier, marking a second consecutive quarter of annual decline. The data strengthened expectations that the BoC will not rise rates soon, with markets broadly anticipating a hold at the June 10 meeting. Expectations of a dovish BoC, and progress toward a US-Iran peace deal pushed bond yields lower and eased concerns about higher borrowing costs. Both parts agreed to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, although the deal still requires approval from US President Trump. In finance, RBC was up 1.5% and Great-West Lifeco gained 1%. Gold prices rose for a second consecutive session, lifting miners such as Agnico Eagle (+3.2%) and WPM (+3.3%). Tech stocks also outperformed, with Shopify rising 3.8% and Celestica surging 10.2%.
2026-05-29
TSX Advance on Falling Bond Yields
The S&P/TSX Composite Index edged up to trade above 34,500 on Friday as a deal to extend the US-Iran ceasefire renewed hopes for an end to the Middle East conflict, while investors also assessed GDP data. The US and Iran agreed on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, although the deal still requires approval from US President Donald Trump. Oil prices retreated, pushing bond yields lower as energy-driven inflation concerns eased, supporting banks and the broader index amid reduced worries over higher borrowing costs. Meanwhile, Canadian GDP stalled in the first quarter of 2026. The data reinforced expectations of a dovish Bank of Canada and added further downward pressure on bond yields. RBC, TD Bank, and BMO gained about 1%. Higher gold prices supported miners, with Agnico Eagle up over 0.5% and Franco-Nevada advancing nearly 1%.
2026-05-29
TSX Futures Rise on Likely US-Iran Ceasefire Extension
Futures tracking the S&P/TSX Composite Index edged up on Friday as a deal to extend the US-Iran ceasefire renewed hopes for an end to the Middle East conflict, while investors also assessed GDP data. The US and Iran agreed on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, although the deal still requires approval from US President Donald Trump. Oil prices retreated, pushing bond yields lower as energy-driven inflation concerns eased, supporting banks and the broader index amid reduced worries over higher borrowing costs. Meanwhile, Canadian GDP stalled in the first quarter of 2026, matching the 0.2% contraction recorded in the final quarter of 2025. The data reinforced expectations of a dovish Bank of Canada and added further downward pressure on bond yields. Gold prices also edged higher, supporting mining stocks.
2026-05-29