Canada’s main stock index hit a fresh record high on Monday as surging prices of precious metals powered mining shares, outweighing trade uncertainty sparked by U.S. President Donald Trump’s threat to impose 100 per cent tariffs on Canada.
At 11:12 a.m. ET, the S&P/TSX Composite Index was up 93.88 points, or 0.28 per cent, at 33,238.66, topping the record closing high set in the last session.
Gold miners climbed 4 per cent, as gold gained 2.1 per cent after briefly moving past US per cent5,100 per ounce. Silver extended its record run and rose 8.2 per cent, while copper prices also gained. The broader materials index advanced 3.9 per cent.
Gold has built on last year’s stellar gains, fueled by geopolitical tensions and concerns over the Federal Reserve’s autonomy. Analysts, however, warn that the rally may not be sustainable.
“We’re entering a point where if the gold rally continues, it’s going to dislocate other parts of the market. There’s going to be a resistance point at some point because of its relative role compared to treasuries and equities,” said Colin White, chief executive officer at Verecan Capital Management.
The day’s gains came despite uncertainty after Trump on Saturday threatened a 100 per cent tariff on Canada if it follows through on a trade deal with China.
Prime Minister Mark Carney responded on Sunday that Canada respects its commitments under the United States-Mexico-Canada trade agreement to not pursue free trade agreements with non-market economies.
The Bank of Canada will also announce its rate decision this week. Major economists polled by Reuters expect the Canadian economy to grow steadily, reinforcing expectations of unchanged policy rates through 2026.
In other news, Bombardier fell 7 per cent. A twin-engine Bombardier jet crashed on Sunday while taking off from a Maine airport with eight aboard.
U.S. stocks are ticking higher Monday, while other markets make much louder moves, including another record-breaking rush for the price of gold.
The S&P 500 rose 0.4 per cent to win back its losses from last week’s dip. The Dow Jones Industrial Average was up 143 points, or 0.3 per cent, and the Nasdaq composite was 0.4 per cent higher.
Baker Hughes helped lead the way and rose 3.6 per cent after delivering a stronger profit for the latest quarter than analysts expected. The energy technology company said it’s benefiting from strong momentum in demand for liquefied natural gas, among other things.
CoreWeave jumped 12.8 per cent after Nvidia said it invested US per cent2 billion in the stock and will help accelerate the buildout of CoreWeave’s artificial-intelligence factories, which use Nvidia chips, by 2030 to advance AI adoption. Nvidia slipped 0.2 per cent.
USA Rare Earth leaped 19 per cent after saying the U.S. government agreed to invest US per cent277 million to help the company produce heavy rare earths, minerals and magnets. The Trump administration also agreed to a proposed US per cent1.3 billion loan, while the company separately raised US per cent1.5 billion through private investors.
Much of the rest of Wall Street was relatively quiet. That included mixed performances for airlines, which had to cancel thousands of flights due to the winter storm that swept much of the United States over the weekend. American Airlines Group rose 0.1 per cent, while Delta Air Lines slipped 0.4 per cent.
The U.S. dollar’s value also continued its recent decline against peers. This time, it was the Japanese yen leaping the most against the dollar amid expectations that officials in Japan and the United States may intervene in the market to prop up the Japanese currency’s value.
More swings could be ahead for financial markets in a week full of big tests.
The Federal Reserve will announce its latest move on interest rates on Wednesday. It’s been lowering its main interest rate and has indicated more cuts may be on the way in 2026 to help shore up the job market. But most economists expect it to hold steady on Wednesday, in part because inflation remains stubbornly above the Fed’s 2 per cent target.
Several of Wall Street’s most influential stocks are also set to deliver their earnings reports this week. That includes Meta Platforms, Microsoft and Tesla on Wednesday and Apple on Thursday.
In the bond market, the yield on the 10-year Treasury eased to 4.21 per cent from 4.24 per cent late Friday.
In stock markets abroad, indexes edged higher in Europe following a more mixed showing in Asia. Japan’s Nikkei 225 tumbled 1.8 per cent for one of the world’s sharpest moves. A stronger yen could hurt Japanese exporters, and Toyota Motor fell 4.1 per cent.
Reuters and The Associated Press
