Basic materials stocks weigh on TSX, as U.S. markets gain and oil prices rise

TORONTO – Canada’s main stock index edged lower, while U.S. markets were positive and oil prices rose after the latest fighting threatened the U.S.-Iran ceasefire. 

The United States said Monday that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it targeted American soldiers in Kuwait with missiles, which the U.S. says it shot down.

“When there’s fighting, the market looks at it as negative, because it looks at it as we’re further away from … ships transiting the Strait of Hormuz. We looked at it as oil prices remain elevated, we looked at it as inflation remains elevated, all those things (are) negative,” said Allan Small, senior investment adviser at iA Private Wealth.  

The S&P/TSX composite index was down 34.25 points at 34,734.89.

In New York, the Dow Jones industrial average was up 46.42 points at 51,078.88. The S&P 500 index was up 19.90 points at 7,599.96, while the Nasdaq composite was up 114.19 points at 27,086.81.

A slight majority of U.S. stocks actually fell, including companies with big fuel bills hurt by higher oil prices. United Airlines lost 2.6 per cent, and Alaska Air Group fell 3.3 per cent after the price for a barrel of Brent crude oil climbed 4.2 per cent to settle at US$94.98.

The July crude oil contract was up US$4.80 at US$92.16 per barrel.

Expensive oil has already sent inflation higher, which increases not only bills for households but also yields in the bond market. High yields worldwide recently have threatened to slow economies and undercut prices for stocks and all kinds of other investments.

Hope, meanwhile, seems to remain on Wall Street that the United States and Iran will ultimately reach an agreement to reopen the strait, allow deliveries of oil to resume from the Persian Gulf and ease the upward pressure on inflation.

Strength from several market heavyweights also helped to power Wall Street.

Nvidia was the strongest force lifting the U.S. market and rose 6.3 per cent after CEO Jensen Huang announced several product updates at a conference. What Nvidia does matters immensely for the U.S. stock market because it’s the biggest in terms of overall market value. That means the movements for its stock carry more weight on the S&P 500 than any other’s.

And Wall Street’s biggest companies have been growing so much that they’re dominating the market.

Small said tech stocks helped markets on both sides of the border, with that sector adding the most points to the TSX on Monday. 

On the flipside, basic materials stocks were the biggest weight on the TSX. 

The August gold contract was down US$86.70 at US$4,506.30 an ounce.

Separately, shares of Algoma Steel rose 3.21 per cent after South Korean defence firm Hanwha announced a deal with the company on Monday to supply military-grade steel for the possible manufacturing of land defence vehicles in Canada.  

The Canadian dollar traded for 72.27 cents US compared with 72.47 cents US on Friday.

This report by The Canadian Press was first published June 1, 2026.

— With files from The Associated Press.

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