Energy stocks help S&P/TSX composite end higher, U.S. stock markets edge lower

TORONTO – Energy stocks helped Canada’s main stock index finish higher, while U.S. markets lost ground.

Philip Petursson, chief investment strategist at IG Wealth Management, said that stock markets have been “well balanced” to start the year.

“You’re seeing an improved outlook on oil with the potential for regime change in Iran, but also some news that there’s going to be less investment in new oil coming through, and that is going to tighten up supply, and that’s helping to contribute to higher prices,” Petursson said.

The March crude oil contract was up 26 cents US at US$59.34 per barrel.

Meanwhile, the consumer cyclicals sector weighed on Canada’s benchmark index with weakness coming from the auto sector, which Petursson said appeared to be the result of Canada-China trade developments.

Canada reached a deal with Beijing on Friday to slash tariffs on a set number of Chinese electric vehicles in exchange for China dropping duties on agriculture products, Prime Minister Mark Carney said as he concluded a highly-anticipated trip to China.

“If Carney is opening the door for imports of Chinese EVs, that will increase competition on auto sales in Canada,” he said.

The S&P/TSX composite index was up 11.63 points at 33,040.55.

Next week, Canadian investors will get some fresh economic data when Statistics Canada releases annual inflation figures for December on Monday. A Reuters survey of economists expects the annual inflation rate held steady at 2.2 per cent in December, according to LSEG Data & Analytics.

Petursson said he is expecting a “surprise to the upside,” but it will not likely change the path of interest rates for Bank of Canada. The central bank’s next meeting is scheduled for later this month where most economists are expecting the bank to hold its key lending rate at 2.25 per cent.

In New York, the Dow Jones industrial average was down 83.11 points at 49,359.33. The S&P 500 index was down 4.46 points at 6,940.01, while the Nasdaq composite was down 14.63 points at 23,515.39.

U.S. stocks edged a bit lower as the first week of corporate earnings season ended with markets trading near record levels.

Technology stocks were the strongest forces behind the market’s moves throughout most of the day. Several big technology stocks made strong gains and helped offset losses elsewhere.

“We’re getting a lift from semiconductor demand, and so that’s rolling into tech. We would say that the AI trade certainly isn’t done. It’s far from over,” Petursson said.

Broadcom rose 2.5 per cent and Micron Technology rose 7.8 per cent. The semiconductor companies are among several Big Tech companies with outsized valuations that often push the market higher or lower.

Wall Street will have a broader mix of earnings to review next week, coming from airlines, industrial companies, and tech. United Airlines, 3M, and Intel are all scheduled to release their quarterly earnings results next week.

The Canadian dollar traded for 71.88 cents US compared with 71.95 cents US on Thursday.

The February gold contract was down US$28.30 at US$4,595.40 an ounce.

This report by The Canadian Press was first published Jan. 16, 2026.

— With files from The Associated Press.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)