Tech Stocks Lead TSX Higher While Energy Slips
What’s going on here?
The TSX climbed 0.5% to 30,431.06, with soaring tech names like Celestica in the spotlight after upbeat results—even as energy stocks slipped on weaker oil and trade jitters.
What does this mean?
A surprise earnings beat and raised outlook from Celestica fired up Canada’s main index, sparking gains across tech, financial, and utility stocks. But energy shares tumbled 0.9%, as oil prices fell 2% on fresh US sanctions targeting Russian oil and potential OPEC+ output hikes. Materials sagged too, with lower gold prices dragging the sector down as risk appetite got a lift from improved global trade sentiment. Recent agreements, like a new US–Japan critical minerals deal, boosted market morale, but US–Canada relations cooled after President Trump announced a 10% tariff on Canadian goods. Investors are also hoping for a possible US–China trade thaw, and all eyes are on the Bank of Canada and Fed as both are expected to cut rates by 0.25 points. Meanwhile, nuclear energy drew attention as Cameco surged over 20% after clinching an $80 billion US reactor partnership with Westinghouse and Brookfield, fueling a 2.5% jump for Brookfield as well.
Why should I care?
For markets: Tech runs the show as energy steps back.
The tech sector’s strong performance kept the TSX moving forward, even as energy and materials lost ground—a sign that investors may be rotating toward growth stocks. Solid results from Celestica boosted confidence, while turbulence in oil and gold highlighted shifting trends. If expected rate cuts materialize, tech could stay in the driver’s seat, but markets will keep an eye on trade developments for the next move.
The bigger picture: A new era for Canadian trade and energy.
Changing trade relationships and big investments in nuclear power are setting the tone for Canada’s economic future. While tariff flare-ups and sanctions add uncertainty, deals with Japan and momentum in nuclear energy suggest a bigger shift for Canada’s policy and business landscape. How leaders respond to these changes will shape Canada’s global standing and set the course for investors.
