Canadian stocks fluctuated over the course of the trading session on Tuesday before eventually ending the day modestly lower. The choppy trading came as U.S. President Donald Trump halted a planned military attack on Iran but observed that strikes could commence soon if Iran fails to strike a deal.
Notably, the Canadian markets were closed on May 18, Monday, on account of Victoria Day holiday.
The benchmark S&P/TSX Composite Index bounced back and forth across the unchanged line as the day progressed before settling at 33,741.24, down by 92.11 points (or 0.27%).
Seven of the 11 sectors posted gains today, with the energy sector leading the pack.
In a significant development in the U.S.-Iran conflict, Trump announced yesterday through his social media platform Truth Social that he halted his planned strikes on Iran scheduled for today at the request of the leaders of Qatar, Saudi Arabia, and the United Arab Emirates, who have assured him that the ongoing negotiations would yield a favorable outcome.
Trump emphasized that any deal reached would not allow Iran to build nuclear weapons. The president reiterated that U.S. forces will be ready to recommence a large-scale massive strike in the event of Iran failing to reach an agreement.
This announcement eased war tensions triggered by a series of posts by Trump through Truth Social over the past weekend.
On Sunday, urging Iran to make a deal quickly, Trump messaged that the clock is ticking for Iran and rushed them to act fast to reach a deal, failing which nothing would be left of the country.
Later on Monday, Iran's Tasnim news agency stated that Iran had sent a fresh 14-point peace plan to the U.S. through Pakistan, which is acting as an intermediary.
On the domestic economy, data from Statistics Canada revealed that on an year-on-year basis, the inflation rate rose to 2.80% in April from 2.40% in the previous month (highest in two years) though below market expectations of 3.10%.
On a month-on-month basis, consumer prices increased 0.4% from a month earlier in April, below market expectations of 0.7%.
The annual core inflation rate, (which excludes eight of the most volatile components) eased to 2.1% in April from 2.5% in the prior month. On a month-on-month basis, core prices rose by 0.2% in April.
The surge in gasoline prices year-over-year last month (28.60%) due to the ongoing Middle East tensions and the consequential supply shock is feeding into transportation and broader consumer prices. Energy prices are 19.20% higher compared to the previous year.
The next announcement on interest rates by the Bank of Canada is slated for June 10. Economists expect the central bank to hold its policy rate at 2.25%.
Yesterday, the Pentagon announced "pausing" participation in the Permanent Joint Board on Defense which works on Canada-U.S. defense initiatives.
This advisory body on North American continental defense was established in 1940 by the then-U.S. President Franklin Roosevelt and then-Canada Prime Minister William L. Mackenzie King.
Walking away from this board, the Trump administration claimed that Canada has not met its commitments on defense spending.
Canadian investors remain concerned about the prospects of a successful renewal of the Canada-United States-Mexico Agreement (CUSMA) on free trade as Trump had hinted that the U.S. may withdraw from the pact.
The deal allows a breather to Canadian exporters to circumvent the tariffs imposed by the Trump administration last year.
Major sectors that lost in today's trading were Real Estate (0.19%), Consumer Discretionary (1.31%), Healthcare (1.84%), and Materials (3.77%).
Among the individual stocks, Aya Gold and Silver Inc (14.51%), Americas Gold and Silver Corporation (13.28%), Perpetua Resources Corp (12.49%), and Silvercorp Metals Inc (9.38%) were the notable losers.
Major sectors that gained in today's trading were Energy (2.31%), Utilities (0.97%), Consumer Staples (0.97%), and Communication Services (0.78%).
Among the individual stocks, Strathcona Resources Ltd (5.86%), Birchcliff Energy Ltd (4.86%), Paramount Resources Ltd (3.65%), and Fortis Inc (2.06%) were the prominent gainers.
Goeasy Ltd (8.67%) and Thomson Reuters Corporation (5.42%) were among the prime market-moving stocks today.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.