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On Wall Street, the S&P 500 and Nasdaq traded higher through the afternoon, while the Dow Jones Industrial Average fluctuated near the flatline. Markets initially opened weaker after fresh economic data showed U.S. inflation accelerating to its fastest pace in three years, largely due to elevated energy costs linked to tensions in the Middle East.
Investors also reacted to weaker-than-expected GDP figures, reinforcing concerns that economic growth may be slowing even as inflation remains stubbornly high.
Oil prices remained volatile throughout the session, with Brent crude climbing sharply after recent military activity near the Strait of Hormuz reignited supply concerns.
Rising energy prices helped boost Canadian energy producers but also contributed to fears that central banks could maintain higher interest rates for longer. Bond yields in both Canada and the United States moved higher as traders adjusted expectations for future rate cuts.
Despite those pressures, equity markets continued to show resilience following a strong earnings season and improving risk sentiment. Analysts noted that investors appear increasingly willing to look beyond geopolitical uncertainty and focus instead on corporate profits, AI-related growth opportunities, and signs that global tensions may stabilize in the weeks ahead.
