North American stock markets traded mixed on Monday afternoon as investors weighed surging oil prices, escalating geopolitical tensions in the Middle East, and continued enthusiasm surrounding artificial intelligence-related stocks.
In Canada, the S&P/TSX Composite Index was down 112.36 points or 0.32%, to 34,656.78 despite gains in tech and energy shares.
Rising concerns over tensions involving the United States and Iran pushed oil prices sharply higher, providing a boost to Canada's resource-heavy benchmark.
Investors also monitored strength in base metals, which helped support materials stocks throughout the session.
At the same time, higher oil prices created a mixed backdrop for equities. Brent crude climbed above US$95 per barrel as traders reacted to renewed geopolitical risks in the Middle East. While stronger energy prices benefited oil producers, investors remained cautious about the potential inflationary impact and its implications for interest rates.
The Canadian dollar was trading at 72.27 cents US.
ON BAYSTREET
The TSX Venture Exchange was up 18.47 points, or 1.83%, to 1,029.98.
Four of the 12 TSX subgroups were positive on Monday, led by tech stocks, up 5.40%, energy stocks were ahead 2.74% and telecom issues were up 0.50%.
On the downside - gold issues shed 3.06%, material stocks dipped 2.02% and financial issues sank 1.40%.
ON WALL STREET
South of the border, U.S. markets were relatively subdued after entering June near record highs. The S&P 500 hovered around unchanged levels, while the Nasdaq Composite posted modest gains thanks to continued strength in technology shares. The Dow Jones Industrial Average lagged as higher energy prices and geopolitical uncertainty weighed on broader market sentiment.
Artificial intelligence remained a dominant theme for investors. Shares of major semiconductor and technology companies received support after new AI-focused product announcements from Nvidia and its partners, reinforcing optimism that AI spending will continue to drive earnings growth across the sector. Market participants have increasingly viewed AI as a key catalyst behind the market's strong rally over the past several months.
Looking ahead, attention is turning toward a busy week of economic data, including U.S. employment figures and other indicators that could influence expectations for Federal Reserve policy. Investors are also preparing for additional corporate earnings reports from major technology and consumer-facing companies.
