TSX Closes Flat as Tech Gains Offset Broader Losses

The S&P/TSX Composite Index closed near flat at 35,518 on Monday, as gains in technology shares offset declines in energy and financials. Tech stocks advanced, tracking strength in the Wall Street AI trade, with Shopify jumping 5.7%. Global yields remained near multi-year highs amid concerns over persistent energy-driven inflation and rising fiscal risks. Credit-sensitive stocks fell, with RBC and TD Bank down 0.5% each, BMO losing 0.7% and Scotiabank falling 0.9%. Energy stocks also declined as the oil rally stalled. Suncor (-1.2%) agreed to sell interests in three offshore oil assets to Ithaca, while Cenovus (-3%) agreed to acquire Athabasca Oil in a cash-and-stock deal. Mining shares mostly fell as gold prices pared gains, with Barrick down 0.6%.

The S&P/TSX Composite Index fell nearly 0.5% to below 35,500, weighed down by losses from major banks and miners. Global yields remained elevated near multi-year highs amid concerns over persistent energy-driven inflation, rising fiscal risks and increasing debt issuance linked to artificial intelligence. Credit-sensitive stocks posted losses, with RBC and TD Bank down more than 0.5%. Mining shares also declined as gold prices pared gains, with Agnico Eagle shedding nearly 1.5% and Barrick losing more than 1.5%. Elsewhere, Suncor (-1.5%) said it had agreed to sell its interests in three offshore oil assets to Ithaca, while Cenovus (-4%) said it would acquire Athabasca Oil in a cash-and-stock transaction. Energy stocks were also pressured as the oil rally stalled.

Futures tracking Canada’s stock exchange edged higher on Monday as oil prices fell on easing supply pressures, reducing inflation concerns. Oil prices eased as flows through the Strait of Hormuz recovered, while the G7’s latest emergency stockpile release also weighed on prices. The halt in the oil rally offered some respite to credit-sensitive stocks that have been under pressure from energy-driven inflation worries. Meanwhile, Friday’s soft US jobs report reduced the odds of an imminent rate hike by the US Federal Reserve, further supporting those equities. While odds of an October rate hike by the Bank of Canada have receded, investors still expect the central bank to raise rates at least once before the end of 2026. Gold prices rose, lending support to mining shares. Elsewhere, Suncor said it had agreed to sell its interests in three offshore oil assets to Ithaca. Cenovus said it would acquire Athabasca Oil in a cash-and-stock transaction.