Canada's benchmark equity index posted a slight decline on Friday morning as investors digested a retreat in energy prices and lingering geopolitical uncertainty that blunted momentum from a large relief rally the day before. By 09:40 ET the S&P/TSX Composite Index had fallen 61.12 points, or 0.18%, to 33,903.21.
The early pullback followed a robust session on Thursday when the index rallied 1.94% to finish at 33,964.33. The blue-chip S&P/TSX 60 also eased on Friday, declining 0.21% to 1,978.52 after a 2.00% gain in the previous trading day.
U.S. markets
Across the border, U.S. equities opened at record levels on Friday, continuing a rally driven by strong technology-sector earnings. The S&P 500 rose 0.4% to a new high of 7,237.19, while the NASDAQ Composite surpassed the 25,000 mark with a 0.5% advance.
Shares of Apple Inc (NASDAQ:AAPL) jumped more than 4% in early trade after the company issued optimistic revenue guidance and signalled a strong gross margin outlook. Reddit Inc (NYSE:RDDT) also posted a notable gain, surging nearly 10% as its daily active user growth exceeded Wall Street estimates.
Energy markets
Oil prices moved lower on Friday, slipping back from four-year highs as markets weighed fresh geopolitical headlines. Brent futures fell 1.25% to $109.02 a barrel, while WTI futures dropped 2.83% to $102.10.
Despite the pullback in crude, supply concerns remained elevated. The Strait of Hormuz is described in market commentary as effectively closed to global shipments, and Iran warned of "long and painful strikes" on American positions should President Donald Trump proceed with proposed military options. These developments continue to underpin upside risk for energy prices even as markets cool from recent peaks.
Precious metals and policy backdrop
Gold slipped on Friday, trading near one-month lows as investors considered the implications of persistent inflation for central bank policy. XAU/USD fell 0.27% to $4,617.24 an ounce, extending a period of weakness that included roughly a 1% drop in April.
Hawkish commentary from the Federal Reserve and other major central banks has put pressure on non-yielding assets, with policymakers increasingly flagging energy-driven inflation as a factor that could require interest rates to remain higher for longer. That dynamic has weighed on gold's appeal despite geopolitical risks.
Market implications
The combination of a step-back in energy prices and persistent geopolitical uncertainty produced a cautious tone in Canadian markets on Friday. While U.S. tech strength supported risk appetite and helped push major U.S. indices to fresh highs, commodity-sensitive sectors and safe-haven assets showed mixed reactions as investors balanced supply concerns and central bank policy risks.
Overall, the session reflected a market environment in which strong corporate results in the technology sector are supporting equity gains, even as energy and macro policy considerations create intermittent headwinds.