Canada’s main stock index rose to a record high on Tuesday, driven by gains in metal mining shares as investors looked past hotter-than-expected Canadian core inflation data and anticipated further progress in easing global trade tensions. The S&P/TSX Composite Index ended up 83.7 points, or 0.3%, at 26,055.63, surpassing its previous record closing high on Friday. The market was closed on Monday for the Victoria Day holiday.
This marks the index’s 10th consecutive day of gains, the longest winning streak since October 2021. Finance leaders from the Group of Seven (G7) industrialized democracies are set to meet in Canada this week, aiming for unity on non-tariff issues, although consensus may be challenging with the Trump administration’s focus on U.S. interests. “All eyes are on the G7 this week,” said Michael Constantino, CEO of online investment platform Webull Canada.
“The U.S.-China deal has eased some global tensions, and there’s hope that the G7 meeting will provide a framework for further easing trade fears.”
Canada’s annual inflation rate eased to 1.7% in April as energy prices dropped following the removal of a federal consumer carbon tax. However, two key measures of underlying inflation rose above 3%, reducing expectations for a Bank of Canada interest rate cut next month. The materials group climbed 3.5% as gold prices rallied, while the consumer staples sector added 1.5%.
In contrast, the technology sector ended 1.4% lower.
G7 meeting influences investors’ optimism
On Wall Street, major indexes posted modest losses, with the benchmark S&P 500 ending a six-session streak of gains, pressured by rising Treasury yields.
The Dow Jones Industrial Average fell 114.83 points, or 0.27%, to 42,677.24; the S&P 500 lost 23.14 points, or 0.39%, to 5,940.46; and the Nasdaq Composite dropped 72.75 points, or 0.38%, to 19,142.71. Investors are also closely monitoring comments on the monetary policy outlook from Federal Reserve officials, including St. Louis Fed President James Bullard.
Traders expect at least two 25-basis-point Fed rate cuts by the end of 2025, with the first anticipated in September. Home Depot fell 0.6%, reversing early gains, after the home improvement retailer reported first-quarter sales that beat Wall Street estimates. Tesla rose 0.5% following CEO Elon Musk’s statement at an economic forum in Qatar that he remains committed to being CEO for the next five years.
Other technology heavyweights, including Nvidia, experienced declines. Declining issues outnumbered advancers by a 1.37-to-1 ratio on the NYSE. The S&P 500 posted 19 new 52-week highs and no new lows, while the Nasdaq Composite recorded 59 new highs and 46 new lows.
Volume on U.S. exchanges was 16.14 billion shares, compared to the 17.38 billion average for the last 20 trading days.
