TSX closes at record high as tech, miners rally on easing Middle East tensions

Investing.com - Canada’s main stock index surged to a record close on Tuesday, driven by a surge in mining and technology shares as easing geopolitical tensions and stronger precious metals prices boosted risk appetite. 

The Toronto Stock Exchange’s S&P/TSX composite index climbed 575.45 points, or 1.6%, to finish at 35,801.59, marking its strongest daily advance since April 30 and surpassing the previous record closing high set last Tuesday.

Materials stocks jumped 4.7% as gold, silver and platinum prices climbed, boosting mining shares. Americas Gold and Silver, Trekor Metals and Perpetua Resources surged between 10.6% and 13.1%, while spot gold gained 0.8%, silver advanced 2.4% and platinum rallied more than 6%. 

Technology stocks climbed 4.1%, mirroring Wall Street’s rally as the S&P 500 touched its highest intraday level since early June. Optimism was fueled by upbeat AI-related forecasts from Caterpillar and Palantir.

Canada’s trade surplus widened to C$3.86 billion in June from a revised C$3.70 billion in May, marking the fourth consecutive monthly trade surplus, Statistics Canada reported Tuesday. Exports rose 0.4% while imports increased 0.2% during the month.

Exports of metal and non-metallic mineral products jumped 16.5% in June, driven by a 27.9% increase in unwrought gold, silver, and platinum group metals. Higher shipments of gold to the United Kingdom and increased purchases of Canadian-held gold by foreign residents contributed to the gain. Total exports reached a record $77.5 billion, the fifth consecutive monthly increase.

U.S. indices jumped

Wall Street on Tuesday closed at a record high for the first time since early June, extending a stellar start to August following a mostly negative performance in July. After a weeks-long slide, the artificial intelligence trade has come back to life. Meanwhile, sliding oil prices and Treasury yields have buoyed sentiment as well. 

The spotlight is on the much-anticipated first quarterly report from Elon Musk’s SpaceX after the closing bell. Also on the docket is AMD, with its earnings set to provide another catalyst for chip stocks that are coming off their worst month since the financial crisis.   

The benchmark S&P 500 index jumped 1.8% to end at 7,735.13 points, its first record close since June 2. The blue-chip Dow Jones Industrial Average surged 1.7% to settle at 54,085.94 points, also a record close. The tech-heavy NASDAQ Composite advanced 2.6% to conclude at 26,584.99 points. 

Oil prices reverse course

U.S. Treasury Secretary Scott Bessent told CNBC that he believed the U.S. and Iran were nearing an agreement, noting that "there is a chance we may have a deal today or tomorrow" to open the Strait of Hormuz and "move towards a more normalized position in this conflict."

Qatar also said a push to forge a diplomatic resolution to the Iran war is ongoing, with the efforts focused on de-escalation and the reopening of the Strait of Hormuz, according to media reports.

The Gulf country, which has served as a regional mediator between Iran and the U.S., reportedly added that language on a possible deal has been drafted and is being circulated among negotiators. While there is currently no agreement to hold direct talks, a short-term resolution is the focus for Qatar, the reports said.

Oil prices erased earlier gains in the wake of the headlines. Brent crude futures, the global oil benchmark, had slumped by 5.4% to $79.25 per barrel, after having gained more than 2.5% previously during the session. U.S. West Texas Intermediate (WTI) crude futures dropped 5.4% to $76.01 per barrel.

Earlier in the week, U.S. President Donald Trump asserted that revived talks with Iran would soon start, although Iranian Foreign Minister Esmail Baghaei denied that any such dialogue was taking place. Trump responded by calling Iranian leadership "unbelievably duplicitous."

Tehran did confirm that talks with Oman were ongoing over the status of the Strait of Hormuz. But traffic through the channel was scant, while military tensions in the Gulf remained heightened.

Scott Kanowsky contributed reporting.