TSX jumps 1.7% in biggest one-day gain since August, closing near record high
Technology and resource stocks drove a risk-on rally in Canada Monday, pushing the S&P/TSX Composite Index back toward its record and extending the AI trade that briefly wobbled last week.
According to Reuters, the S&P/TSX Composite Index jumped 552.34 points, or 1.7 percent, to 33,023.32, its biggest one-day gain since August and close to the record closing high it reached in January.
BNN Bloomberg reports that markets in both Canada and the US rose, led by a rebound in technology.
Kathryn Del Greco, senior investment adviser at TD Wealth, told BNN Bloomberg that investors were stepping back into tech after last week’s pullback, particularly in software.
She said, “There’s definitely some bargain hunters stepping into the market today,” and added that “after last week’s big correction, I think there’s some money that is looking to deploy as this AI trade continues to play out.”
Del Greco said the rally in Canadian tech names largely followed gains in US technology stocks, describing a “very nice recovery day in the US” that would “pull along Canada as well.”
According to Reuters, the TSX technology group rose 2 percent, supported by a nearly 5 percent gain in Shopify Inc.
Financials added breadth, with the sector up 1.1 percent and Bank of Montreal climbing 1.5 percent after naming Catherine Blaesing and Jerome Doucet as co-heads of global corporate banking within its capital markets team.
Materials provided another strong leg.
The materials group, which includes metal miners, advanced 4.7 percent as the weaker US dollar lifted US dollar‑denominated commodities.
Reuters reported that gold rose 2.3 percent and copper added 1.3 percent.
BNN Bloomberg separately noted that gold has roughly doubled over the past 12 months and has swung between about US$4,500 and nearly US$5,600 an ounce.
The April gold contract gained US$99.60 to settle at US$5,079.40 an ounce, while the March silver contract rose US$5.34 to US$82.23 after silver jumped 6.9 percent.
Energy also participated.
Reuters said oil settled 1.3 percent higher at US$64.36 a barrel on renewed concerns that tensions between the US and Iran could threaten supply.
BNN Bloomberg reported the March crude contract at US$64.36 per barrel, and Reuters said the TSX energy sector climbed 0.4 percent.
On the currency front, the Canadian dollar strengthened to 73.66 cents US from 73.27 cents US on Friday.
In US equity markets, the Dow Jones industrial average rose 20.20 points to 50,135.87, the S&P 500 gained 32.52 points to 6,964.82, and the Nasdaq composite advanced 207.46 points to 23,238.67.
AI-linked chip makers again led the move, with Nvidia up between 2.4 percent and 2.5 percent and Broadcom up between 3.3 percent and 3.4 percent in separate reports, making them two of the strongest drivers of S&P 500 gains.
Del Greco also pointed to the Dow’s move above 50,000 last week as a sign of healthier breadth beyond the mega‑cap tech trade.
She told BNN Bloomberg that seeing the “good ol’ Dow” reach a new all‑time high shows a broadening out of the market, which she called “extremely healthy for the sustainability of this bull market.”
In fixed income, the yield on the 10‑year US Treasury slipped to 4.20 percent from 4.22 percent on Friday as investors waited for this week’s US jobs and consumer inflation data.
Markets expect the US Federal Reserve to resume cutting interest rates later this year, though stronger‑than‑expected inflation could delay that timing, while a weaker US labour market could bring cuts forward.
