The S&P/TSX Composite Index fell 0.5% to below 35,150 on Monday, pressured by weakness in gold miners and technology shares. Agnico Eagle and Barrick Gold declined about 2%, while Wheaton Precious Metals dropped more than 2.5% as a stronger US dollar weighed on gold prices.
Meanwhile, oil prices slid further below pre-conflict levels after OPEC+ agreed to raise output targets again starting in August, and exports through the Strait of Hormuz continued to recover, improving the outlook for global supply. These developments reinforced expectations that the Bank of Canada will keep interest rates on hold, pushing bond yields lower and easing worries over borrowing costs.
Financial stocks outperformed, with Royal Bank of Canada rising 1%, Toronto-Dominion Bank gaining more than 0.5%, and Bank of Montreal advancing over 1%.
