TORONTO — Canada’s main stock index drove further into record territory Tuesday, while U.S. markets were mixed, with AI stocks recovering some of their losses from earlier in the day. The S&P/TSX composite index was up 181.56 points at 35,749.70. “There’s been a lot of back and forth throughout the day, but as it relates to the States, the tech sector was very weak earlier in the day, and it seems to have clawed its way back almost to where it started,” said Brian Madden, chief investment officer with First Avenue Investment Counsel. In New York, the Dow Jones industrial average was up 537.24 points at 52,747.32. The S&P 500 index was up 15.60 points at 7,428.78, while the Nasdaq composite was down 55.17 points at 24,876.91. Expectations are weighing particularly heavily on stocks of chipmakers and other companies that have been huge winners from the boom in artificial-intelligence technology. Micron Technology’s stock came into the day having more than tripled for the year during a period of gangbuster growth, for example. During the three months through May 28, its revenue more than quadrupled from a year earlier. But the company’s shares dropped 8.9 per cent on Tuesday and it was the heaviest weight on the S&P 500. Others also helping to keep the market in check were Advanced Micro Devices, down 8.1 per cent, and Applied Materials, down 7.8 per cent. The losses for AI chip stocks were even sharper earlier in the day in other markets worldwide. Several huge spenders on AI chips and data centres are scheduled to report their latest quarterly results this week, which could offer updates on how much they’re planning to invest. Meta Platforms and Microsoft are reporting on Wednesday, while Amazon is due on Thursday. “We’ll be watching the big Mag Seven (tech stock) earnings coming out of the States because those really set the tone for the U.S. market, and if the U.S. market is super green then Canada oftentimes will follow that direction. “And if it’s super red, the same contagion will apply in that direction as well,” Madden said. Because AI superstar stocks have grown so big, their movements carry more weight on the S&P 500 and other indexes than many other companies. But the broad U.S. market could hold up despite their swings if other, less-loved areas are able to keep rising. It’s a rotation that some strategists have suggested could be healthy for the overall stock market. The September crude oil contract for North American benchmark West Texas Intermediate was down US$3.35 at US$79.26 per barrel. The price for a barrel of Brent crude to be delivered in October fell 4.4 per cent to settle at US$82.08. Pushing up on prices have been worries that worsening fighting in the Middle East could slow the global flow of oil. On the other side, though, are hopes that the United States and Iran could still negotiate something to allow oil tankers to use the Strait of Hormuz to move crude. “The way we’ve taken to interpreting moves in the oil price is not really about physical supply and demand at all anymore. It’s a tradable proxy on people betting on whether there’s escalation or de-escalation in the Persian Gulf conflict,” Madden said. The drop in oil prices helped push traders to trim their bets that the U.S. Federal Reserve could announce a hike to interest rates following its latest meeting on Wednesday. Technology stocks were leading the gains on the TSX, helped by shares of Celestica Inc. rising 9.49 per cent after it reported second-quarter results after markets closed Monday. The Canadian dollar traded for 70.91 cents US compared with 70.85 cents on Monday. The August gold contract was down US$38.30 at US$4,038.70 an ounce. This report by The Canadian Press was first published July 28, 2026. — With files from The Associated Press
