Canadian shares jumped on Monday, with mining gains outweighing losses in energy-linked companies as oil prices fell, while investors also drew comfort from easing inflation fears and a rebound in U.S. stock markets.
The TSX gained 657.17 points, or 1.8%, to conclude trading Monday at 36,446.26.
The Canadian dollar was unchanged at 70.82 cents U.S.
Barrick Mining posted a rise in third-quarter profit as higher gold prices outweighed the impact of a decline in production. Barrick shares hiked $2.56, or 4.5%, to $59.76.
Strathcona Resources said on Sunday it would acquire Greenfire Resources in a deal valued at about $2.7 billion to $2.9 billion, including debt, as the oil producer expands its presence in Alberta's oil sands region.
Strathcona shares slipped 34 cents to $36.00, while those for Greenfire acquired $3.01, or 37.9%, to $10.94.
Vertical market software firm Constellation shed $134.23, or 3.8%, to $3,392.29, after reporting a 16% fall in free cash flow in the third quarter from a year earlier, dragging down the technology index.
Gold stocks were among the big winners Monday, led by Iamgold, charging ahead $1.51, or 5.7%, to $27.95, while Novagold Resources captured 67 cents, or 7.4%, to $9.71.
Materials were also courting the stratosphere, as Ero Copper gained $3.43, or 8.4%, to $44.15, while Hudbay Minerals leaped $2.68, or 7.1%, to $32.71.
In the industrial sector, Air Canada took flight $1.34, or 6.3%, to $23.30, while Hammond Power Systems were raised $19.87, or 10.6%, to
$207.35.
Energy went the other way, with Vermilion Energy down 37 cents, or 2.5%, to $14.41, while Advantage Energy was trounced 23 cents, or 2.2%, to $10.33.
In telecoms, TELUS gave back 22 cents, or 1.7%, to $12.59, while Cogeco Communications doffed 88 cents, or 1.6%, to $54.32.
ON BAYSTREET
The TSX Venture Exchange added 14 points, or 1.7%, to 836.07.
All but two of the 12 subgroups were in the green after the week’s first sessiopn, led by gold, hiking 4.7%, materials, higher by 4.6%, and industrials, jumping 2.6%.
The two laggards were energy, down 0.9%, and telecoms, falling 0.5%.
ON WALLSTREET
Stocks surged on Monday, boosted by a decline in oil prices as well as gains in technology shares after last week’s volatility.
The Dow Jones Industrial index soared 1,103.79 points, or 2.2%, to 52,389.52, supported by gains in stocks such as Goldman Sachs and Caterpillar.
The S&P 500 index accelerated 172.95 points, or 2.3%, to 7,549.81.
The tech-heavy NASDAQ climbed 673.71 points, or 2.7%, to 25,253.14.
With Monday’s rally, the Dow is now above the level it closed on Election Day. The S&P 500 and tech-heavy NASDAQ still remained slightly below, however.
The tech sector also focused on the bombshell announcement Sunday that Nvidia’s board of directors is opening an investigation into co-founder and CEO Jensen Huang’s relationship with a businesswoman who U.S. intelligence agencies say is a Chinese spy. Nvidia shares were last down 5%.
“Magnificent Seven” names were higher contrary to Nvidia. Amazon gained 3%, while Tesla sprang 6% and Alphabet 1%. Microsoft also added 3%.
Other chip stocks advanced as well, with Broadcom popping 9% and Advanced Micro Devices jumping 13%.
This week, investors are looking ahead to key AI-related earnings — CoreWeave, Cisco and Applied Materials are all on deck — as they assess the outlook for tech and whether the recent selloff has further to run.
Friday’s market partially rebounded from Thursday’s brutal AI-driven selloff, as chip stocks recovered on renewed buying. However, concerns linger in the wake of the Democrats’ strong midterm results, with investors fearing that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.
Prices for the 10-year Treasury hesitated, raising yields to 4.87% from Friday’s 4.86%. Treasury prices and yields move in opposite directions.
Oil prices withered $3.87 to $86.96 U.S. a barrel.
Gold prices recovered $76.00 to $4,150.90 U.S. an ounce.
