TORONTO – Canada’s main stock index gained more than 170 points on Friday, helped by gains in energy stocks, while U.S. markets were mixed to finish the first trading day of 2026.
Ashish Utarid, assistant vice-president of investment strategy with IG Wealth Management, said seasonality, among other factors, likely helped to push Canadian energy stocks higher.
“The energy sector is up probably on confidence of seasonality, colder weather as well. There are lots of natural gas plays in Canada,” he said.
He also noted the gain in the Canadian stock market came amid a slight decline in the basic materials sector, which was the main driver powering the index higher in 2025.
“We’re not concerned; we believe that 2026 is shaping up to be the year of industrial metals. So there’s going to be a lot of demand,” he said.
He added that gold prices also moved lower on Friday, with the price for the precious metal being “quite volatile” recently after hitting a peak on Dec. 30.
“It was up and down the last few days, and I suspect that’s a lot to do with volumes. Less people are watching these things during the holiday season, but it looks like everything will be back to business in short order,” Utarid said.
The February gold contract was down US$11.50 at US$4,329.60.
The S&P/TSX composite index was up 170.61 points at 31,883.37.
Meanwhile, U.S. stocks eked out small gains on Wall Street Friday in a wobbly day of trading to kick off the new year. Markets were closed on Thursday for New Year’s Day.
Technology stocks steered the market, especially companies with a focus on artificial intelligence, continuing the trend that pushed the broader market to records in 2025. Nvidia jumped 1.3 per cent and was the biggest force trying to push the market higher. But a 2.2 per cent fall for Microsoft helped to check those gains.
Tesla also weighed on markets with a 2.6 per cent drop after reporting falling sales for a second year in a row.
Nvidia, Microsoft and Tesla are among the most valuable companies in the world and their outsized valuations give them more influence on the stock market’s direction. That includes sometimes pushing the market up and down from hour to hour.
Amid the start of the new year, Utarid said it’s important for investors not to focus solely on technology or any single market. He said the year finished off “very well” in Canada from an equity perspective, along with gains in European and emerging markets.
“It was actually the U.S. market that lagged compared to other developed markets,” he said.
“We just want to emphasize that diversification in your portfolios matters the most. Because you need to have built-in hedges over the long term.”
In New York, the Dow Jones industrial average was up 319.10 at 48,382.39. The S&P 500 index was up 12.97 points at 6,858.47, while the Nasdaq composite was down 6.36 points at 23,235.63.
The Canadian dollar traded for 72.80 cents US compared with 72.96 cents US on Wednesday.
The February crude oil contract was down 10 cents US at US$57.32.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
