TORONTO – Canada’s main stock index gained more than 400 points on Monday, while U.S. markets also rose as investors found entry points after last week’s losses.
Michael Greenberg, head of Americas portfolio management at Franklin Templeton Investment Solutions, said that within the TSX materials sector, gold was a large winner.
“That’s really a longer-term theme around investors wanting to diversify their portfolios and their U.S. dollar holdings, just with that risk that maybe there’s some weakness in the U.S. dollar in the coming quarters or even years,” he said.
The S&P/TSX composite index was up 404.44 points at 30,316.63.
The December gold contract was up US$112.20 at US$4,122.00 an ounce.
He added that as gold prices have risen this year, the selloff from last week provided investors who may have been under-exposed or looking to add to positions with an opportunity.
“With a bit more of a risk-on feel to the market, it’s just another area that’s going to benefit as probably investors want to tee up some positions in there for diversification purposes,” Greenberg said.
Over the short term, he said gold prices are difficult to predict.
However, the price of the key commodity could perform “fairly well” over the medium-to-long term amid a structural trend of central banks and institutional investors diversifying their safe-haven holdings, given the risks associated with the U.S. dollar, Greenberg said.
Outside of gold, he noted Canada’s technology sector performed well, despite its smaller size compared with U.S. indexes.
Meanwhile, big tech and other superstars of the U.S. stock market got back to rallying on Monday, and Wall Street recovered most of its loss from last week.
Greenberg noted that some investors may have viewed the pullback last week as a potential entry point.
“There’s a lot of liquidity out there. Some may have felt that they’ve missed some of this rally, so I think we’re just seeing a bit of a buying opportunity after slightly lower prices from last week’s volatility,” he said.
In New York, the Dow Jones industrial average was up 381.53 points at 47,368.63. The S&P 500 index was up 103.63 points at 6,832.43, while the Nasdaq composite was up 522.64 points at 23,527.17.
Nvidia was by far the strongest force lifting the market and leaped 5.8 per cent. It was a powerful rebound after Nvidia and other winners of the frenzy around artificial-intelligence technology led last week’s drop.
Critics say their stock prices shot too high and too fast in the AI mania, drawing comparisons to the 2000 dot-com bubble that ultimately burst.
Market gains south of the border also came as the U.S. Senate took the first steps on Sunday to end the shutdown.
“With a bit of a tougher week last week, we’ve got obviously better news on the government shutdown front, so I think that’s just allowing people to dive back into the parts of the market that have been working,” Greenberg said.
The Canadian dollar traded for 71.33 cents US compared with 71.11 cents US on Friday.
The December crude oil contract was up 38 cents US at US$60.13 per barrel.
This report by The Canadian Press was first published Nov. 10, 2025.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
