The S&P/TSX Composite Index declined 0.8% to close at 34,960 on Monday, pressured primarily by weakness in financials. Major banks were among the session’s largest laggards, as rising geopolitical tensions between the US and Iran pushed oil prices higher and drove up bond yields, offsetting the impact of Canada’s softer-than-expected June inflation figures. RBC slipped 2.1%, TD Bank dropped 2.3%, BMO lost 1.9%, CIBC fell 2.6%, and Scotiabank ended the day down 2.3%.
In contrast, technology-related names outperformed, with Shopify gaining 1.1% and Celestica advancing 2.4%, mirroring a rebound in US tech shares. Energy stocks also finished higher amid the upswing in crude prices, led by Canadian Natural, up 0.7%, and Cenovus, which added 1.5%.
On the macroeconomic front, Canada’s annual inflation rate slowed to 2.8% in June 2026 from 3.2% in May, coming in just below market expectations of 2.9%.
