Canada’s main stock index rose on Monday as financials and consumer-related stocks moved higher, with the market recouping some of the previous session’s steep losses. The S&P 500 also closed higher, lifted by gains in chipmakers and other companies related to artificial intelligence
The S&P/TSX Composite Index ended up 260.36 points, or 0.8%, at 32,183.88. On Friday, the index posted its biggest decline since April as precious metal prices tumbled. The TSX notched its ninth straight monthly gain in January despite Friday’s setback, adding 0.7%.
On Monday, the TSX’s heavily weighted financials index added 1.7%. Consumer staples rose 2.7% and consumer discretionary ended 1.9% higher. Shares of apparel retailer Aritzia Inc jumped 6.5%.
Energy was a drag, falling 1%. The price of oil settled 4.7% lower on signs of de-escalating tensions between the United States and OPEC member Iran.
The TSX materials sector - made up largely of mining companies - rose about half a percentage point, even as gold and silver prices edged a little lower. Gold briefly dropped below $4,500 per ounce in the overnight hours, down more than $1,000 from its high point reached just last week. It then climbed back above $4,800 before settling at $4,652.60, down 1.9% from Friday. Silver’s price has been on an even wilder ride recently, and it swung from a 9% loss overnight to a modest gain and back to a loss of 1.9%.
In materials sector news Monday, Eldorado Gold said it would acquire Foran Mining in a deal valuing the copper-focused developer at about C$3.8 billion. Shares of Eldorado tumbled 8.5%.
On Wall Street, the S&P 500 climbed 0.54% to end the session at 6,976.44 points, just short of its record high close of 6,978.60 last Tuesday. The Nasdaq gained 0.56% to 23,592.11 points, while the Dow Jones Industrial Average rose 1.05% to 49,407.66 points.
The Russell 2000 index jumped about 1%, with the small-cap index significantly outperforming the S&P 500 and Nasdaq so far in 2026.
Alphabet rose 1.9% to a record high and Amazon added 1.5%. Both companies are set to report quarterly results this week, giving investors an additional glimpse of the race to dominate AI technology. AI-related data firm Palantir climbed 0.8% ahead of its quarterly report after the bell.
Chipmakers benefiting from AI-related demand for their components also rallied. SanDisk surged 15.4%, while Advanced Micro Devices rose 4% and Micron Technology added 5.5%.
It was the S&P 500’s first gain in three sessions following recent worries about pricey valuations of technology companies whose shares have soared in recent years on optimism about AI. The S&P 500 is up about 2% in 2026, lagging the Russell 2000’s more than 6% rally.
Investors often view gains in small-cap stocks as a reflection of confidence in the economy.
“The fundamentals are good and earnings are strong. We have positive surprises both for revenues and earnings, pretty much across the board,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Analysts expect S&P 500 companies to have grown their earnings nearly 11% in the December quarter, up from an estimate of about 9% at the start of January, according to LSEG. Technology-related companies are driving most of that growth.
Walt Disney tumbled 7.4%, despite posting quarterly earnings above Wall Street expectations, as it warned of a decline in international visitors to its U.S. theme parks and a slump in earnings at its TV and film division.
In economic news, U.S. factory activity grew for the first time in a year in January, PMI data showed.
Lower energy prices boosted airline shares. United Airlines, JetBlue, Delta Air Lines and Southwest all rallied between 4% and 8%.
The House of Representatives took up legislation to lift a partial government shutdown that began on Saturday, with a final vote expected on Tuesday. The Bureau of Labor Statistics said the closely watched employment report for January would not be released on Friday due to the partial shutdown.
Advancing issues outnumbered falling ones within the S&P 500 by a 1.4-to-one ratio. The S&P 500 posted 30 new highs and 9 new lows; the Nasdaq recorded 160 new highs and 217 new lows.
Reuters, Globe staff