The S&P/TSX Composite Index slipped to trade below 35,000 on Monday after reports that Iran will suspend communication with the United States, clouding prospects for a renewed ceasefire. Oil prices rebounded, reigniting stagflation worries and driving bond yields higher.
Financial stocks weakened on expectations of persistently higher borrowing costs and a more hawkish monetary stance. Royal Bank of Canada (RBC) and Toronto-Dominion Bank (TD) each fell nearly 1%, while Canadian Imperial Bank of Commerce (CIBC) declined close to 2%.
A drop in gold prices pressured mining shares. Agnico Eagle slid 3.5%, Barrick Gold lost nearly 3%, and Wheaton Precious Metals (WPM) fell almost 4%.
In contrast, energy stocks advanced alongside the oil rally, with Canadian Natural Resources gaining nearly 3% and Suncor Energy climbing more than 3%. Shopify added almost 2%, supported by optimism over AI-driven growth following Nvidia’s unveiling of a new advanced processor for PCs.
