Toronto TSX Index Closes Higher Amid Oil Price Decline

Investing.com - Major Canadian stock exchanges closed higher on Monday, rebounding after three consecutive days of decline last week, boosted by falling oil prices.

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The S&P/TSX Composite Index rose 1.03%, marking its biggest single-day gain since the conflict began on February 26, closing at 32,876.65 points.

The U.S. stock market also opened higher as some risk appetite returned to the market, although caution remains regarding the ongoing U.S.-Israel joint airstrikes on Iran entering its third week.

The blue-chip Dow Jones Industrial Average increased 0.83%, the benchmark S&P 500 climbed 1.01%, and the Nasdaq Composite rose 1.22%.

Last week, major Wall Street indices declined, weighed down by a sharp surge in oil prices amid concerns over global supply restrictions. The Strait of Hormuz, a critical waterway in southern Iran, sees about one-fifth of the world’s oil tanker traffic pass through it, but Tehran has effectively closed it, restricting energy flows and threatening the global economy.

Despite measures by the U.S. to ease supply concerns, including easing some sanctions on Russian oil, crude oil prices remain above pre-conflict levels from late February. Gasoline prices, factored into overall inflation data and a key concern for U.S. voters ahead of the midterm elections in November 2026, have also risen.

Oil Prices Decline

Brent crude oil prices retreated from earlier gains amid volatile trading, though the global benchmark still remains above $100 per barrel. U.S. WTI crude futures also fell 4.4%, to $92.62 per barrel.

U.S. President Donald Trump has called on multiple countries to help Washington reopen the Strait of Hormuz. However, during comments on Air Force One on Sunday, he did not specify whether any countries had agreed to his request.

He also told the Financial Times that NATO members should assist in reopening the strait, adding that if these countries do not respond or refuse to help Washington, “it will be very detrimental to NATO’s future.”

Trump specifically named China, implying that if Beijing does not use its influence to unblock the strait, he might cancel the summit scheduled for April with China’s top leadership. The New York Times reported that oil tankers headed to China are allowed to pass through the strait, while others have been attacked.

The Wall Street Journal, citing top EU diplomats, reported that the EU is considering options to restart shipping through the Strait of Hormuz. By cutting off most oil tanker traffic through this route, Tehran has effectively deprived major economies, especially Europe and Asia, of critical energy sources.

Nvidia CEO Jensen Huang to Speak

Amid the ongoing Middle East conflict, Nvidia CEO Jensen Huang will return to the spotlight at the company’s annual developer conference starting Monday. Investors are eager to learn about new products the company plans to launch to stay competitive in the rapidly evolving AI landscape.

This year, Huang’s appearance comes as Nvidia strives to maintain its long-standing leadership in the AI race and fend off competitors in the fast-growing AI-accelerated chip sector. Besides rivals like AMD and Intel, Nvidia now faces competition from large tech companies like Alphabet’s Google, which are actively developing their own AI-optimized processors.

The emergence of “reasoning” in AI—where AI robots perform tasks on behalf of humans—poses another challenge for Nvidia. These models often run on chips different from Nvidia’s traditional products, and some customers like OpenAI and Meta Platforms (Facebook’s parent company) have indicated they may release their own versions of AI processors.

In December, Nvidia spent $17 billion to acquire Groq, a startup specializing in low-cost, high-speed reasoning chips. Last month, Huang said he would demonstrate how to integrate Groq’s technology into Nvidia’s CUDA platform.

Nvidia also invested about $2 billion in laser manufacturers Lumentum and Coherent, which can use light beams to transmit data quickly between chips. While these lasers could accelerate inter-chip connections, their production levels have not yet matched Nvidia’s popular processors.

Bank of America Securities analysts stated in a report, “We expect Nvidia to announce further expansion of its AI product portfolio.”

According to Reuters over the weekend, sources say Meta is considering large-scale layoffs that could affect more than 20% of its staff, as the company increases its investment in AI infrastructure.

As of 05:18 Eastern Time, the company’s stock rose over 3% in pre-market trading.

The potential layoffs are not yet finalized, and no timetable has been set. Senior executives have recently signaled to leadership to begin preparing for cuts, as Meta aims to offset the high costs of AI infrastructure investments and improve efficiency with AI-assisted staff.

Spot Gold Stabilizes

Spot gold prices steadied on Monday after briefly falling below key levels, with focus entirely on further developments in the Iran conflict.

Cautious sentiment ahead of the Federal Reserve meeting this week also pressured gold, as markets worry that the central bank may adopt a hawkish outlook in response to stubborn inflation.

As of 10:07 a.m. Eastern Time, spot gold rose 0.3% to $5,033.31 per ounce, while gold futures fell 0.4% to $5,040.31 per ounce. Earlier in the session, spot prices briefly dipped below $5,000 per ounce.