Canada, U.S. markets rise as technology stocks gain ground and oil prices fall

A sign board in Toronto displays the TSX close on Monday March 16, 2020. THE CANADIAN PRESS/Frank Gunn

TORONTO — Canadian and U.S. stock markets gained ground on Wednesday as oil prices fell and tech stocks rose on both sides of the border. 

“It could be a potential bounce that we are likely seeing, but we have seen markets are continuing to remain driven by those geopolitical headlines,” said Brianne Gardner, senior wealth manager of Velocity Investment Partners at Raymond James Ltd. 

The S&P/TSX composite index was up 334.72 points at 32,876.65.

All sectors were in positive territory on Canada’s benchmark index, with technology stocks leading the gains. 

“Tech had sold off earlier during some of this geopolitical volatility, but usually when markets stabilize, I think higher beta sectors like tech do tend to bounce first,” Gardner said

Canadian investors also sifted through inflation figures for the month of February, which showed signs of easing. However, economists warn that price relief will be short-lived as the war in the Middle East fuels surging energy costs.

Statistics Canada said Monday that February’s inflation reading came in at 1.8 per cent year-over-year, half a percentage point lower than January’s figures and just under economists’ expectations for the month.

“Obviously, that was helped largely by lower energy costs and the fading impact of last year’s temporary tax break, but if we look under the surface, I think the broader trend also looks calmer,” Gardner said. 

The tax holiday saw federal sales tax taken off a variety of household staples, gifts and dining out for a two-month period ending mid-February 2025.

In New York, the Dow Jones industrial average was up 387.94 points at 46,946.41, while the S&P 500 index was up 67.19 points at 6,699.38. The Nasdaq composite was up 268.82 points at 22,374.18.

One of the main drivers in the stock market on Monday was the price of oil. The April crude oil contract was down US$5.21 at US$93.50 per barrel.

It’s a reprieve, for now at least, after oil prices spiked from roughly US$70 before the United States and Israel began their attacks on Iran. In response, Iran has nearly halted traffic through the narrow Strait of Hormuz, where a fifth of the world’s oil typically sails from the Persian Gulf to customers worldwide. That has oil producers cutting production because their crude has nowhere to go.

The worry in financial markets is that if the Strait remains closed for a long time, it could keep enough oil off the market to drive inflation up to a debilitating level for the global economy.

The stock market has a track record of bouncing back relatively quickly from military conflicts in the Middle East and elsewhere, as long as oil prices don’t stay too high for too long. Many professional investors are expecting that to be the case again, which has helped keep U.S. stock prices near their record levels.

Nvidia, whose chips are powering much of the world’s move into artificial-intelligence technology, rose 1.6 per cent as its CEO, Jensen Huang, talked up the tech’s possibilities at an AI conference and said he foresaw US$1 trillion in demand for AI chips through 2027. It was the strongest single force lifting the S&P 500.

The Canadian dollar traded for 73.13 cents US, compared with 72.91 cents US on Friday.

The April gold contract was down US$59.50 at US$5,002.20 an ounce. 

Daniel Johnson, The Canadian Press. With files from The Associated Press

This report by The Canadian Press was first published March 16, 2026.