TSX edges higher amid steadier U.S. markets and recovering AI stocks

A group of men walks past a building in Toronto that used to house the Toronto Stock Exchange on Thursday, August 18 2011. THE CANADIAN PRESS/Aaron Vincent Elkaim

Stock markets in Canada finished in positive territory, while U.S. markets were mixed as AI stocks recovered some of their losses from last week.

“On Friday we saw this tech-led … sell-off and today it’s the opposite, it’s a tech-led rebound. Some stabilization in sentiment and semiconductors are really driving what’s happening today,” said Angelo Kourkafas, senior investment strategist at Edward Jones.

The S&P/TSX composite index was up 65.29 points at 34,478.74, after it fell more than 800 points on Friday.

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Gains in the tech sector led the overall index higher. Kourkafas said the positive sentiment south of the border was driving some of the gains in Canada’s tech sector on Monday.

In New York, the Dow Jones industrial average was down 80.77 points at 50,786.01. The S&P 500 index was up 21.99 points at 7,405.73, while the Nasdaq composite was up 220.23 points at 25,929.66.

Some of the best performers in the U.S. market were companies that sell computer chips, memory and other products fuelling the AI boom. They had plunged Friday amid worries that their prices had shot too high due to AI euphoria.

Marvell Technology climbed 9.6 per cent in its first trading after S&P Dow Jones Indices said the semiconductor company’s stock has grown enough to join its widely followed S&P 500 index.

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Chip and memory companies are indeed reaping big growth in revenue and profit because of the AI boom, but their stock prices have been soaring at astounding speeds. A widely followed index of semiconductor stocks surged nearly 85 per cent for the year so far through Thursday, for example.

Now, the question is whether Friday’s drop was the start of a downturn or just a pause that helps shake out excessive optimism.

Kourkafas said the recent swings appear to show that markets were “a bit overextended.”

“There was a lot of momentum, but especially in the U.S., we had these nine straight weeks of gains. A lot of the semiconductor stocks had been moving higher in a parabolic way, which is not sustainable,” he said.

In the oil market, prices jumped after Israel and Iran launched strikes against each other, threatening to drag the region back into full-scale war. The price for a barrel of Brent crude oil, the international standard, briefly topped US$98 overnight.

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But it later regressed after Israel and Iran appeared to back away from further strikes. Brent’s price settled at US$94.25 per barrel, up 1.2 per cent from Friday.

The July crude oil contract was up 76 cents US at US$91.30 per barrel.

“On the geopolitical front, there was some reassurance or relief that Iran announced it is halting its strikes against Israel, and the hopes for a ceasefire remain,” Kourkafas said.

He added that geopolitical developments have recently “stayed in the background for the most part.”

The Canadian dollar traded for 71.70 cents US compared with 71.82 cents US on Friday.

The August gold contract was down US$1.90 at US$4,363.40 an ounce.

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Daniel Johnson, The Canadian Press

With files from The Associated Press.

This report by The Canadian Press was first published June 8, 2026.