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Canada’s main stock market began the week on a positive note. The S&P/TSX Composite Index went up by 141 points, reaching 30,613.45. This rise came after it already hit a record high last week. On Friday, the index had climbed by 1% to end at 30,471.68, marking another winning session and a 2.4% gain for the week.
Investors are now expecting the Bank of Canada to cut interest rates again this month. This hope grew stronger after new data showed Canada’s services sector shrank more than expected in September. Shares of Shopify jumped 6.5%, helping boost the overall technology sector.
In the U.S., stocks were also mostly higher on Monday. Investors remained confident that the Federal Reserve will reduce interest rates soon, even as the U.S. government shutdown continues. The S&P 500 rose 13 points, the Nasdaq gained 75 points, but the Dow Jones slipped slightly by 65 points.
Last Friday was a mixed day for Wall Street. Both the S&P 500 and Dow Jones closed at record highs, while the Nasdaq fell 0.3%. The ongoing government shutdown has delayed several key economic reports, including the important nonfarm payrolls data. Because of that, analysts have been paying closer attention to private business and employment numbers, which suggest some warning signs for inflation and overall economic health.
The delay in official data is also making the Federal Reserve’s upcoming interest rate decision even more significant. Despite the uncertainty, most traders still expect more rate cuts when the Fed meets later this month. Meanwhile, the political standoff between Republicans and Democrats continues, and the White House has warned that federal worker layoffs could start if no agreement is reached soon.
In company news, Constellation Brands was set to release its quarterly results later on Monday. The company, known for its alcoholic beverages, had missed both sales and income targets last quarter. It has been struggling with rising aluminum tariffs and slower consumer spending.
Shares of Critical Metals Corp. surged more than 75% in premarket trading. Reports suggested that the Trump administration might invest in the company, which is developing a major rare earth project in Greenland. If the deal goes through, the U.S. could take about an 8% ownership stake in the firm, giving it access to one of the world’s largest untapped rare earth deposits, a market mostly controlled by China.
Oil prices also rebounded strongly after falling last week. OPEC and its allies agreed to a smaller-than-expected increase in oil production for November. They will add 137,000 barrels per day, which is much lower than what many traders feared. This helped ease worries about an oversupply in the market. Brent oil rose 1.9% to $65.76 a barrel, and West Texas Intermediate gained 2% to $62.09.
Overall, markets started the week with optimism, driven by hopes of rate cuts, strong tech gains, and steady oil prices.