TORONTO – Broad-based gains helped Canada’s main stock index climb higher to finish Monday’s trading session, while U.S. stock markets again hit new highs.
The S&P/TSX composite index was up 164.79 points at 26,857.11.
“It looks like all sectors in Canada are up, and this is likely on the heels of the digital service tax that was repealed yesterday by the Canadian government,” said Ashish Utarid, an assistant vice-president of investment strategy with IG Wealth Management, in an interview. “And so that’s a big rebound from Friday when Canadian stocks gave back a lot of their profit.”
On Friday, U.S. President Donald Trump had said he was suspending talks with Canada because of his anger with the tax, which he called “a direct and blatant attack on our country.” Ottawa climbed down on Sunday and rescinded the tax just hours before the first payment came due. Prime Minister Mark Carney said Monday the move was part of the broader trade negotiation.
The U.S. stock market added to its record on Monday as Wall Street closed out a second straight winning month. In New York, the Dow Jones industrial average was up 275.50 points at 44,094.77. The S&P 500 index was up 31.88 points at 6,204.95, while the Nasdaq composite was up 96.28 points at 20,369.73.
One of the main reasons U.S. stocks roared back so quickly from their springtime swoon has been the hope that Trump will reach deals with other countries to lower his stiff proposed tariffs.
Utarid said he thinks the broader gains in equity markets were based on enthusiasm surrounding Canada’s move to rescind its planned tax. He said any time a trade deal gets closer to being finalized, it creates more certainty for investors.
“We’ve seen the investor base look at these market volatility moments as an opportunity to buy. So there seems to be resiliency for the investor to hop in when markets are down. And you coincide that with the tax being repealed and you have more incentive for investors to pile into Canadian equities,” he said.
Utarid said policy “flip-flopping” is a negotiating tactic by the Trump administration.
“At the end of the day, if we (Canada) can capitulate on a couple of things to maintain economic supremacy alongside with the U.S., it ends up being a good deal for Canada. We do end up exporting the majority of our goods and services to the U.S. They are an important trade partner, and the U.S. knows it,” he said.
Based on the current environment, Utarid said he is leaning back into equities after being underweight at the beginning of the year in U.S. stocks. He said he was waiting for a good entry point and has since positioned back into U.S. equities.
“We like Canadian equities as well; they are more commodity-driven. The price of gold is going up. So our metals and mining business is looking attractive, and the price of gold can extend its rally into the year,” Utarid said.
The August gold contract was up US$20.10 at US$3,307.70 an ounce.
According to Utarid, gold prices have risen as investors have used the commodity as a hedge against inflation risks.
“When the U.S. Congress, which is in the middle of getting their big, beautiful bill passed, they are expected to spend more on their fiscal budgets, which means more money in the hands of consumers, which means more spending,” he said.
The Canadian dollar traded for 73.30 cents US compared with 73.12 cents US on Friday.
The August crude oil contract was down 41 cents US at US$65.11 per barrel.
This report by The Canadian Press was first published June 30, 2025.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
