Markets continue ‘positive tone’ from last week as mining, energy send TSX higher

A signboard displays the TSX as a custodian cleans the windows of the Richmond Adelaide Centre in the financial district in Toronto. THE CANADIAN PRESS/Evan Buhler

TORONTO — Canada’s main stock index finished higher as energy and mining companies had a strong day, while U.S. markets were mixed amid continuing excitement around AI.

Brianne Gardner, senior wealth manager with Velocity Investment Partners at Raymond James, said that much of the gains in equity markets on Monday appeared to be a “continuation of last week’s positive tone.”

“I think the mood feels a little bit more … calm, confident, not euphoric, which we’ve seen before,” she said.

She added that the upbeat tone has come despite the sixth day of a U.S. government shutdown.

• S&P 500 market updates here

“Investors are staying focused on the bigger picture. So, the Fed easing, Bank of Canada easing, a resilient economy, steady AI optimism, that’s keeping momentum alive,” Gardner said.

The S&P/TSX composite index was up 60.20 points at 30,531.88.

In New York, the Dow Jones industrial average was down 63.31 points at 46,694.97. The S&P 500 index was up 24.49 points at 6,740.28, while the Nasdaq composite was up 161.16 points at 22,941.67. The S&P 500 and Nasdaq composite reached new highs.

Advanced Micro Devices helped lead the way, soaring 23.7 per cent, after announcing a deal where OpenAI will use its chips to power AI infrastructure. As part of the deal, OpenAI could own up to 160 million shares of AMD if it hits certain milestones.

The frenzy around AI has been one of the main reasons Wall Street has been hitting record after record, though it’s also raising worries that prices have potentially shot too high.

“Valuations matter to us and to the market. But I think in the short run, especially over one year, there’s basically no link between price to earnings, or P/E ratio, and the S&P 500’s performance or TSX,” Gardner said.

“Over the longer term, that matters, but high valuations alone haven’t been a reason to stay fully out of the equity market.”

As Canada’s main stock index saw gains on the day, Gardner said this was driven by a few factors.

“I think the TSX is kicking off the week too on a positive note. Strength is really coming from energy and materials there, and gold and oil both moving higher,” she said.

• Real-time TSX market updates here

The November crude oil contract was up 81 cents US at US$61.69 per barrel. The December gold contract was up US$67.40 at US$3,976.30 an ounce.

Meanwhile, Gardner said investors will be paying attention to Prime Minister Mark Carney’s trip to Washington to meet with U.S. President Donald Trump on Tuesday. The pair are expected to talk trade and security, as an ongoing tariff dispute shows few public signs of progress.

“I think all eyes are going to be on the macro picture now of what really happens in Canada. And where we’re going to see the Canadian economy go from here, so it will be interesting to see, and I think everyone will be watching how the discussions go with Carney there as well,” she said.

The Canadian dollar traded for 71.66 cents US compared with 71.67 cents US on Friday.

This report by The Canadian Press was first published Oct. 6, 2025.

With files from The Associated Press.