Canada's commodity-heavy stock index surged by the close on Monday, as investors weighed new U.S. tariffs on Canadian goods and awaited details on Washington's threatened sanctions against Iran.
The TSX reversed and climbed 94.11 points to close Monday at 36,714,34.
The Canadian dollar sank 0.28 cents to 72.22 cents U.S.
Miners, particularly ones for gold, were the most powerful, as I-80 Gold Corp gathered 17 cents, or 7%, to $2.66, Seabridge Gold rocketed $4.44, or 10.7%, to $44.64, and NovaGold Resources, picking up $1.13, or 9.4%, to $13.15.
Health-care stocks also contributed to the rise, with Bausch Health Companies taking on 41 cents, or 4.7%, to $9.23, while Extendicare increased 40 cents, or 1.3%, to $30.76.
Among real-estate concerns, with HR REIT scaled higher 14 cents, or 1.4%, to $10.29, while Granite REIT collecting $1.81, or 2%, to $90.68.
The U.S. imposed 50% tariffs on some Canadian goods on Saturday after the two longstanding allies failed to secure a trade agreement, with both sides blaming each other for the collapse of talks.
The new duties add to existing U.S. tariffs on steel, lumber and autos which have taken major hit in the last 18 months. According to trade experts, the tariffs open up some already vulnerable sectors to potential severe damage and could lead to job losses and business closures.
Prime Minister Mark Carney said he had suspended trade negotiations and Canada would retaliate "dollar for dollar" on the new tariffs.
ON BAYSTREET
The TSX Venture Exchange jumped 5.56 points to 993.93.
All but three of the 12 TSX subgroups were ahead, with materials up 1.3%, while gold and real-estate improving 1.2%, and real-estate stronger 1%.
The three laggards were consumer discretionary issues, falling 1.3%, industrials, trailing Friday’s close by 1.2%, and energy, dipping 1%.
ON WALLSTREET
The S&P 500 fell slightly on Monday as a drop in key technology stocks overshadowed a move lower in Treasury yields.
The Dow Jones Industrials zoomed 138.98 points to greet the closing bell at 53,416.99.
The much-broader index backpedaled 21.41 points to 7,652.96.
The NASDAQ Composite sank 200.26 points, however, to 25,980.19.
Declines in chip stocks weighed on the broader market. Micron Technology shed more than 5%, while Advanced Micro Devices gave up 3% and Broadcom pulled back 2%.
Other tech stocks fell as well. Coherent lost 4% and Lumentum dropped 3%, while Sandisk dropped 6%. Corning moved down 2%, while Seagate Technology declined 6%.
Treasury yields moved lower after reports that the Treasury may use the General Account to fund a buyback operation. The 10-year Treasury note yield fell three basis points to 4.708%.
The yield on the 30-year Treasury bond, which topped 5.3% last week to reach levels not seen in nearly 20 years, shed more than three basis points to 5.237%.
The report comes after Treasury Secretary Scott Bessent told the media last week that the Treasury Department’s plans to at least double the level of government debt buybacks in the next few months could be larger than the $4 billion that was announced earlier that week.
Prices for the 10-year Treasury strengthened, lowering yields to 4.70% from Friday’s 4.73%. Treasury prices and yields move in opposite directions.
Oil prices skidded $1.99 to $85.07 U.S. a barrel.
Gold prices spiked $25.70 to $4,706.30 U.S. an ounce.
