Canada's main stock index edged up on Monday, recovering from early trading losses, as gains in energy shares overshadowed broad sectoral declines triggered by worries that military conflict in the Middle East could drag on for weeks.
The TSX took on 40.93 points to 34,380.92.
The Canadian dollar shook off 0.05 cents at 73.10. cents U.S. U.S. and Israeli strikes — and Iranian retaliation — rippled across sectors worldwide, from shipping and aviation to oil, while investors worried that a drawn-out regional war could push energy costs higher and disrupt business in the Gulf region.
U.S. President Donald Trump suggested on Sunday that the conflict with Iran could go on for the next four weeks.
Separately, India and Canada will aim to conclude a free trade pact by the end of this year, Prime Minister Mark Carney said on Monday during his first visit to New Delhi.
The two sides also agreed on a $2.6-billion uranium deal, under which Cameco will supply the fuel to India to support its nuclear ambitions and to work towards a clean, reliable base load power.
Shares in Cameco rocketed $7.87, or 4.49%, to $169.25.
On the economic front, the S&P Global Canada Manufacturing PMI rose to 51.0 in February 2026 from 50.4 in the previous month, marking the second month of improvement and recording a 13-month high
ON BAYSTREET
The TSX Venture Exchange eked up 0.21 points to 1,107.39.
All but three of the 12 TSX subgroups were lower midday, as health-care swooned 1.5%, real-estate lost 1.2% and financials dipped 0.8%.
The three gainers were energy, better by 2.8%, industrials, stronger 2.7%, and telecoms, up 0.6%.
ON WALLSTREET
The NASDAQ and S&P 500 turned positive on Monday, rebounding from sharp declines earlier in the day, as investors monitored the U.S. and Israel strikes on Iran over the weekend.
The Dow Jones Industrial Average lopped off 60.6 points to 48,904.08.
The much-broader dwindled 3.01 points to 6,875.87.
The NASDAQ regained 74.64 points to 22,551.68.
The joint U.S.-Israeli strikes killed Supreme Leader Ayatollah Ali Khamenei, marking a watershed moment for the Islamic Republic and one of its most consequential episodes since 1979. Iranian officials vowed a forceful retaliation against the strikes, raising fears the conflict could escalate further across the region as blasts were heard in places such as Dubai and Abu Dhabi.
President Donald Trump told the media that U.S. military operations in Iran are “ahead of schedule,” but investors are still worried about a prolonged conflict despite those comments.
The three major averages rallied off their nadirs as gains in technology stocks such as Nvidia and Microsoft helped trim the losses. The NASDAQ was down as much as 1.6% at one point, while the S&P 500 and Dow pulled back around 1.2% each at their session lows.
On top of tech, a rise in defense stocks helped the major averages recoup a chunk of their losses. Northrop Grumman advanced around 4%, as did RTX, while Lockheed Martin climbed 3%. Energy shares including Exxon Mobil and Chevron saw gains as well.
Prices for the 10-year Treasury weakened, hiking yields to 4.05% from Friday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices remained in the green $4.20 to $71.22 U.S. a barrel.
Gold prices regained $67.30 to $5,315.20 U.S. an ounce.
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