U.S. stock markets closed at fresh record highs Wednesday while Canada’s benchmark TSX index slipped modestly, as investors reacted to easing oil prices, renewed optimism surrounding U.S.-Iran negotiations, and continued enthusiasm around artificial intelligence-driven technology stocks.
The S&P/TSX Composite Index closed lower, falling roughly 0.7% to around 34,412 points after recently reaching record territory. Weakness in energy and mining shares weighed on the market as commodity prices softened throughout the session.
Despite Wednesday’s decline, Canadian markets have remained resilient in 2026, supported by strong commodity prices and optimism surrounding growing electricity demand tied to AI data center expansion.
In earnings news - Scotiabank (BNS) reported adjusted earnings of $2.7 billion ($2.02 per share), with pre-tax, pre-provision earnings up 16% year-over-year. Canadian banking pre-tax profits jumped 53%. They also increased their quarterly dividend by 4 cents to $1.14 per share.
Bank of Montreal (BMO) profit surged, heavily bolstered by a 47% jump in capital markets profit ($638 million) and $884 million in Canadian personal/commercial banking, pushing EPS to $3.67.
National Bank of Canada (NA) exceeded estimates with an EPS of $3.23 CAD, delivering an impressive return on equity of 15.9% and raising its dividend.
ON BAYSTREET
The TSX Venture Exchange was down 14.78 points, or 1.48%, to 986.90.
Four of the 12 TSX subgroups were positive on Wednesday, led by consumer staple stocks, up 1.28%, telecom stocks were ahead 0.67% and industrial issues were up 0.64%.
On the downside - gold issues shed 3.05%, energy stocks dipped 2.36% and material issues sank 2.20%.
ON WALLSTREET
The Dow Jones Industrial Average climbed 182.60 points, or 0.4%, to close at 50,644.28. The S&P 500 edged up 1.24 points to finish at a record 7,520.36, while the Nasdaq Composite gained 18.55 points to close at an all-time high of 26,674.73.
Wall Street’s gains were fueled by strength in technology and semiconductor stocks, although the pace of the rally slowed compared with earlier sessions. Investors continued pouring money into companies tied to artificial intelligence infrastructure after recent earnings from major chipmakers reinforced expectations for strong long-term demand.
Micron Technology remained one of the market’s standout performers this week following a massive rally tied to AI-related memory chip demand.
Investor sentiment also improved after oil prices dropped sharply on hopes that diplomatic discussions between the United States and Iran could reduce tensions in the Middle East and ease concerns over disruptions in the Strait of Hormuz, one of the world’s most important oil shipping routes.
Brent crude prices fell more than 4%, helping calm fears that surging energy costs could reignite inflation pressures.
Retail stocks also contributed to market strength after several companies posted better-than-expected quarterly earnings. Shares of Abercrombie & Fitch and Bath & Body Works moved higher following strong consumer spending results, easing some investor worries about slowing economic activity.
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