(RTTNews) – Extending the losses from yesterday’s session, Canadian stocks edged lower on Friday as cautious investors refrained from big bets due to the Middle East conflict. A sell-off in tech stocks in the U.S. was mirrored in the Canadian IT sector, which dragged down the index, while gains in the oil-linked energy sector limited the losses.
After opening below yesterday’s close, today the benchmark S&P/TSX Composite Index gained ground early in the session but lost the momentum later and traded negative through the rest of the session before settling at 35,263.85, down by 76.30 points (or 0.22%).
Four of the 11 sectors posted gains today, with the energy sector leading the pack.
Today in the U.S., concerns over the huge spending on artificial intelligence impacted tech stocks. Shares of semiconductor-linked businesses suffered a setback.
As the competition for gaining supremacy in the AI sector intensifies, a Chinese startup Moonshot AI released a new model, Kimi K3, which it claims bridges the gap with leading U.S. tech and surpasses Open AI’s ChatGPT and Anthropic’s Claude on performance capabilities.
The resultant decline in U.S. tech stocks was reflected on Canadian IT sector, which plunged today.
Expectations of a hawkish stance by the U.S. Federal Reserve in the near-term weighed on gold prices. However, a Goldman-Sachs report that estimated brisk buying of the yellow metal by global central banks caused a rebound.
After agreeing to find peaceful ways to end their hostilities, the U.S. and Iran signed a Memorandum of Understanding on June 17. However, the truce was short-lived.
Last week, U.S. forces launched attacks on Iran after Iran fired at a Cyprus-flagged vessel passing through the Strait of Hormuz. Iranian media reported that the ship failed to coordinate with Iranian authorities.
The mutual U.S.-Iran attacks deepened today, with U.S. forces targeting civilian infrastructure in Iran along with military installations.
Iran’s Energy Ministry asked citizens to reduce electricity consumption after U.S. strikes damaged Iranian energy infrastructure.
U.S. bases in the gulf were the targets of Iranian retaliation. Kuwait, Jordan, Oman, Bahrain, and Qatar suffered substantive damages from Iranian drone and missile strikes.
Yesterday, Reuters reported that Iran has called for the Iran-backed Houthi militia group of Yemen to shut the Bab el-Mandeb Strait, a narrow chokepoint that connects the Red Sea to the Gulf of Aden.
The strait is a vital trade corridor between Asia and Europe that roughly carries 12% of global shipments.
Due to the continuing geopolitical risk premium due to supply-related concerns from Arabian countries, crude oil prices skyrocketed today and energy sector soared.
Canada’s Prime Minister Mark Carney announced that Canada will not share the revenue from Gordie Howe Bridge until all the debts are recouped.
The U.S.-Canada bridge which will connect Interstate 75 in Detroit, Michigan, directly with Highway 401 in Windsor, Ontario, is set to be inaugurated on July 27.
Months back, U.S. President Donald Trump stated that U.S. has cut a “better deal” with Canada on toll-sharing. U.S. authorities are yet to respond to Carney’s announcement yet.
On July 1, the U.S. administration refused to renew the Canada-United States-Mexico Agreement on free trade and instead opted to extend it for 10 years with mandatory annual reviews.
Canadian exporters escaped the 2025 U.S. tariffs on Canadian exports into the U.S. by utilizing the CUSMA channel for sending goods. After U.S. decision, Canadian business houses are compelled to prepare for yearly amendments.
Major sectors that gained in today’s trading were Energy (1.91%), Healthcare (1.09%), Utilities (0.35%), and Consumer Staples (0.27%).
Among the individual stocks, Tamarack Valley Energy Ltd (2.88%), Suncor Energy Inc (2.63%), Cenovus Energy Inc (2.43%), Extendicare Inc (4.19%), and Northland Power Inc (2.26%) were the prominent gainers.
Major sectors that lost in today’s trading were IT (1.14%), Consumer Discretionary (0.85%), Communication Services (0.64%), Materials (0.46%), and Financials (0.45%).
Among the individual stocks, Descartes Sys (2.56%), Coveo Solutions Inc (2.07%), Blackberry Limited (1.87%), Restaurant Brands International Inc (2.87%), Telus Corporation (2.02%), and Stella Jones Inc (3.69%) were the notable losers.
Wesdome Gold Mines Ltd (4.20%) and Discovery Mining Ltd (3.20%) were among the prime market-moving stocks today.
