Canadian stocks extended the losses from yesterday's session and pulled back on Tuesday as the U.S.-Iran stalemate continues. In addition, lingering concerns about the huge investments made in AI weighed on tech stocks in the U.S. as well as in Canada.
The Canadian market was down firmly in negative territory around mid-afternoon on Tuesday, weighed down by sharp losses in materials and technology sectors. Energy stocks are up with strong gains, riding on higher oil prices amid the ongoing conflict in the Middle East.
Canadian stocks are likely to swing between gains and losses on Tuesday with investors tracking the trend in the commodities market and continuing to assess the developments on the geopolitical front. With the focus on key central bank meetings, the mood is likely to remain cautious for much of the day's session.
Canadian stocks edged lower on Monday amid rising oil supply concerns after the U.S. cancelled peace talks with Iran, leaving the Strait of Hormuz to remain shut.
Canadian stock market's benchmark S&P/TSX Composite Index drifted lower on Monday, weighed down by losses in materials and consumer discretionary sectors. Thanks to higher oil prices, energy stocks gained significant ground, limiting market's downside.
Canadian shares are likely to open on a mixed note Monday morning with investors assessing the possibility of further talks between in the U.S. and Iran and looking ahead to monetary policy announcements from several central banks, including the Bank of Canada and the Federal Reserve, this week.
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.