Canada’s main stock index rose to another record high on Monday as soaring precious metal prices fed optimism the index’s rally could carry over into 2026.
The S&P/TSX Composite Index ended up 244.33 points, or 0.8%, at 32,000.10 to begin the holiday-shortened week, surpassing Friday’s record closing high.
The commodity-linked index has advanced 29.4% since the start of the year, putting it on track for its biggest gain since 2009.
“If you are looking for something that has really characterized the TSX this year it’s been the outperformance of the financials and materials sectors,” said Bipan Rai, head of ETF and alternatives strategy at BMO Global Asset Management. “You can tie what’s been going on in the materials sector with the outperformance of the metals, especially precious metals this year.”
Gold jumped 2.4% to an all-time peak, powered by safe-haven flows as U.S.-Venezuela tensions flared, while silver also touched a record high. “It tells us, at least as the Canadian market is concerned, we’re set up for a decent year next year as well,” Rai said.
The Toronto market’s materials group, which includes metal mining shares, added 2.4%, with Discovery Silver Corp up nearly 8%. Energy gained 0.9% as the price of oil settled 2.6% higher at $58.01 a barrel. Just three of ten major sectors ended lower, including consumer discretionary. Shares of auto parts supplier Magna International lost 2%, giving back some of its recent gains.
U.S. stocks also rose on Monday as technology stocks extended their recent gains on renewed interest in AI-related companies.
The bounce in tech names began late last week and was driven by Micron Technology’s blowout forecasts and a cooler-than-expected inflation report, which has left the S&P 500 and Dow less than 1% from their record closing levels set on December 11.
Nvidia shares rose and provided the biggest lift to the benchmark S&P 500. Reuters reported the company has told Chinese clients it aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February.
Micron climbed 4% while most other chipmakers also advanced to put the PHLX semiconductor index up 1.1%.
“I don’t necessarily think it’s going to go much higher; it’s going to continue to churn,” said Ken Polcari, partner and chief market strategist at Slatestone Wealth in Jupiter, Florida.
“Today we’re trading higher, but I wouldn’t be surprised if we back off again and then we just rally again right into about where we are.”
The Dow Jones Industrial Average rose 227.79 points, or 0.47%, to 48,362.68, the S&P 500 gained 43.99 points, or 0.64%, to 6,878.49 and the Nasdaq Composite gained 121.21 points, or 0.52%, to 23,428.83.
December has historically been a strong period for stock markets. Since 1950, the Santa Claus rally has been reflected by the S&P 500 rising by an average of 1.3% over the last five trading days of the year and the first two trading days in January, according to the Stock Trader’s Almanac.
This year, that period starts on Wednesday and runs through January 5.
Optimism about AI, signs of a resilient U.S. economy, and expectations for monetary policy easing have outweighed concerns about U.S. tariffs, helping to put the three main U.S. indexes on course for their third consecutive year of gains. The S&P 500 is up 17% on the year.
Most of the 11 S&P sectors traded higher. Materials, up 1.4% and energy, up 1.1%, were among the best performers as commodity prices jumped. The tech sector gained 0.4% while financials gained 1.3% to close at a record.
Wall Street’s fear gauge, the CBOE volatility index, saw its lowest closing level since December 13, 2024, at 14.08.
Trading volumes were light and were likely to thin out further as the holiday approaches. U.S. and Canadian stock markets will close at 1 p.m. ET on Wednesday and shut on Thursday for Christmas.
Volume on U.S. exchanges was 14.57 billion shares, compared with the 16.9 billion average for the full session over the last 20 trading days.
However, economic data, including the preliminary reading of third-quarter GDP, December consumer confidence data, and weekly jobless claims, are scheduled for release this week, offering insights about the health of the U.S. economy as well as hints about the monetary policy path.
“Tomorrow’s GDP number is going to be the last real piece of economic data that anyone really cares about,” said Polcari.
Among other movers, Tesla gained 1.6% after CEO Elon Musk’s 2018 pay package was restored by the Delaware Supreme Court.
Warner Bros. Discovery rose 3.5% after Oracle co-founder Larry Ellison agreed to provide a personal guarantee of $40.4 billion of the equity financing for Paramount Skydance’s offer to acquire the company. Paramount climbed 4.3%
Clearwater Analytics Holdings rallied 8.1% after a group of private equity firms led by Permira and Warburg Pincus clinched a deal to acquire the investment and accounting software maker for about $8.4 billion, including debt.
Advancing issues outnumbered decliners by a 2.15-to-1 ratio on the NYSE and by a 1.61-to-1 ratio on the Nasdaq. The S&P 500 posted 42 new 52-week highs and five new lows while the Nasdaq Composite recorded 113 new highs and 128 new lows.
Reuters, Globe staff