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.
After opening a little lower than yesterday's close, today the benchmark S&P/TSX Composite Index gained a little but lost momentum and traded lower throughout the rest of the session before settling at 33,584.34, down by 233.85 points (or 0.69%).
Seven of the 11 sectors posted gains today, with the energy sector leading the pack.
The war between the U.S. and Iran that began on February 28 entered the third month today.
Last weekend, U.S. President Donald Trump refused to send his emissaries to Pakistan for a second round of negotiation with Iran. While calling off the talks, Trump announced that the U.S. has "all the cards" while Iran has none.
Trump also dismissed the need for direct talks and remarked that Iran can call the U.S. to discuss its plans.
Through intermediaries, Iran relayed a draft plan to the U.S. In its proposal, Iran primarily wanted the U.S. to remove the blockade it has enforced on Iranian ports and committed to immediately reopen the Strait of Hormuz in exchange. Iran also sought a halt to all strikes on its land by both the U.S. and Israel.
However, Iran wanted a discussion on its nuclear programs to happen at a later stage. Of note, the U.S. commenced its war against Iran to curtail its nuclear ambitions. A section of media reported that Trump was unwilling to accept Iran's plan.
Today, through his social media platform Truth Social, Trump claimed that Iran is in a "state of collapse" and wanted the U.S. to reopen the Strait of Hormuz as early as possible.
Quoting sources close to the developments, CNN reported that mediators in Pakistan are awaiting a revised proposal from Iran to end the conflict.
On the domestic front, on April 21, Canada's Prime Minister Mark Carney formed a new Advisory Committee on Canada-U.S. Economic Relations that included leaders from major sectors of the Canadian economy.
Today, the Minister for Canada-U.S. Trade Dominic LeBlanc chaired the inaugural meeting of the new Advisory Committee. The discussion was aimed at building a strong, stable, and mutually beneficial economic partnership between Canada and the U.S.
The Canada-United States-Mexico Agreement, which came into force on July 1, 2020 with a life span of 16 years, is coming up for review on its sixth anniversary, which is July 1, 2026.
While Canada and Mexico want to extend the agreement, Trump hinted months before that the U.S. may exit the pact, raising concerns among Canadian investors.
With Trump's high tariffs on Canadian exports to the U.S. in place since 2025, the CUSMA deal is providing a bypass channel to Canadian exporters.
In the U.S., a report by Wall Street Journal indicated that OpenAI missed its goals for new users and revenue in recent months, restarting the debate on the logic behind huge investments made in AI. As a result, AI-related stocks faced volatility and IT sector stocks in Canada felt the heat.
Major sectors that gained in today's trading were Energy (2.02%), Healthcare (0.68%), Communication Services (0.36%), Real Estate (0.20%), and Financials (0.18%).
Among the individual stocks, Baytex Energy Corp (4.95%), Tfi International Inc (4.92%), Vermilion Energy Inc (4.07%), Tamarack Valley Energy Ltd (3.47%), and Chartwell Retirement Residences (2.59%) were the prominent gainers.
Major sectors that lost in today's trading were Industrials (0.10%), Materials (3.81%), and IT (4.34%).
Among the individual stocks, Celestica Inc (14.48%), Dye and Durham Limited (4.77%), Lightspeed Commerce Inc (3.81%), Lundin Mining Corp (6.92%), Abrasilver Resource Corp (6.72%), and Capstone Copper Corp (6.20%) were the notable losers.
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Market Analysis
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.