TORONTO – Canada’s main stock index edged higher Tuesday amid positive economic data, while U.S. markets also gained ground.
The S&P/TSX composite index was up 33.17 points at 34,856.99
“The fact that GDP has had that massive bounce back, that’s very positive, but the U.S. market continues to grow and outperform and so as an investor you’re looking at more opportunities in the U.S. versus Canada,” said Theresa Shutt, chief investment officer at Harbourfront Wealth Management.
A report from Statistics Canada on Tuesday said the Canadian economy was back in growth mode to start the second quarter, rebounding from a mild contraction in the first three months of 2026. Statistics Canada said real gross domestic product rose 0.5 per cent in April, the fastest growth rate for the economy since July 2025.
On the TSX, gains in the basic materials and financial sectors led the overall index higher.
“Financials are an interesting component because in terms of the AI impact, we’re going to start to see that most importantly in financial services, and most people are thinking of that and that’s why financials are starting to rise,” Shutt said.
In New York, the Dow Jones industrial average was up 136.46 points at 52,319.20. The S&P 500 index was up 58.93 points at 7,499.36, while the Nasdaq composite was up 393.57 points at 26,213.72.
AI stocks were firmer Tuesday, and Nvidia was the strongest force lifting the S&P 500 after rising 2.6 per cent and trimming its loss for the month. That was even though the majority of stocks within the index fell Tuesday.
Microsoft, which is investing heavily in AI, rose 1.2 per cent to cut its loss for the month to 17.2 per cent. Oracle, though, slipped 0.8 per cent to widen its drop for June to 35.1 per cent.
Shutt said it’s important to watch for a split in the AI trade, where winners and losers emerge. She said names like Nvidia are cash flow positive and performing well compared with other companies where much of the AI infrastructure spending is funded by debt.
In the oil market, prices eased after two U.S. envoys arrived in Qatar for talks with mediators about the implementation of an initial deal to end the war in Iran. The Americans will not be having direct negotiations with Iranian diplomats while in Doha.
The price for a barrel of Brent crude oil, the international standard, erased an early, modest rise and fell 1.3 per cent to US$72.95. The August crude oil contract was down US$1.25 at US$69.50 per barrel.
The hope is that an end to the war will restore full access to the Strait of Hormuz, allowing oil tankers to move more crude and lower its price. Expensive oil has already sent inflation jumping around the world, which in turn has raised worries that the U.S. Federal Reserve and other central banks may have to raise interest rates.
“Most people have settled on the fact that while there’s been some elevation in inflation rates or CPI, this is probably something that is temporary,” Shutt said.
The TSX will be closed on Wednesday for Canada Day, while U.S. markets will be closed on Friday for Independence Day.
The Canadian dollar traded for 70.37 cents US compared with 70.39 cents US on Monday.
The August gold contract was down 40 cents US at US$4,038.50 an ounce.
This report by The Canadian Press was first published June 30, 2026.
— With files from The Associated Press
Companies in this story: (TSX: GSPTSE, TSX: CADUSD)
