TORONTO - Canada's main stock index experienced a significant rise, increasing nearly 100 points during late-morning trading on January 26, 2026. The surge was primarily driven by robust performance in gold stocks, as gold prices soared to over US$5,000 per ounce, indicating strong investor confidence in the precious metal amidst ongoing economic uncertainties.
The S&P/TSX composite index showed a notable gain of 88.94 points, reaching a total of 33,233.92. This upward movement occurred despite a looming threat from U.S. President Donald Trump, who indicated plans to impose 100 percent tariffs on Canadian goods should Canada finalize a trade agreement with China. This geopolitical tension raises concerns about trade relations and its implications for the Canadian economy.
In the United States, stock indices also reported positive performance. The Dow Jones Industrial Average rose by 111.49 points, bringing it to 49,210.20. Similarly, the S&P 500 index experienced an increase of 32.36 points, reaching a total of 6,947.97, while the Nasdaq composite saw a gain of 121.21 points, culminating at 23,622.45. This collective growth in U.S. markets reflects a broader trend of investor optimism across North American exchanges.
The Canadian dollar strengthened against the U.S. dollar, trading at 73.07 cents compared to 72.82 cents the previous Friday. This slight appreciation in the Canadian currency indicates a degree of resilience amidst the fluctuating economic conditions and trade negotiations.
Meanwhile, in the commodities market, the March crude oil contract witnessed a decline, falling by 53 cents to settle at US$60.54 per barrel. In contrast, the February gold contract rose significantly by US$119.30, elevating its price to US$5,099.00 per ounce. The contrasting movements of these commodities highlight the differing investor sentiments towards oil and gold, especially in times of uncertainty.
This market scenario captures a moment of both opportunity and challenge for investors, as they navigate the implications of international trade relations and commodity price fluctuations. The current dynamics within the stock market and currency exchange reflect the ongoing interplay between domestic economic performance and global geopolitical developments.
