TSX falls while U.S. markets rise amid hopes Middle East ceasefire holds

TORONTO – Canadian and U.S. stock markets moved in opposite directions a day after broad surges over a ceasefire in the Middle East war.

“In general, I think everything has to do with the uncertainty around the war still,” said Philip Petursson, chief investment strategist at IG Wealth Management.

The S&P/TSX composite index was down 142.86 points at 33,477.71.

In New York, the Dow Jones industrial average was up 275.88 points at 48,185.80. The S&P 500 index was up 41.85 points at 6,824.66, while the Nasdaq composite was up 187.42 points at 22,822.42.

Israel’s prime minister authorized direct negotiations with Lebanon, which eased worries that the two-week ceasefire announced late Tuesday may already be in trouble because of Israel’s bombardment of Lebanon.

Petursson said there has been volatility in the market due to the war, but it hasn’t been that extreme and “feels worse than it’s been.”

“Global economic growth is fairly solid and showing signs of momentum as opposed to deceleration, despite the war, and we would point to the U.S. as kind of the poster child for this,” he said.

Crude oil prices pared some of their gains, but they nevertheless remained higher for the day on uncertainty about when oil tankers can start fully flowing through the Strait of Hormuz.

The narrow waterway has been at the centre of U.S. President Donald Trump’s demands of Iran, and blockages there have kept oil and natural gas stuck in the Persian Gulf and away from customers worldwide.

The May crude oil contract was up US$3.46 at US$97.87 per barrel. Brent crude, the international standard, added 1.2 per cent to US$95.92 per barrel.

Oil prices have been swinging through sharp and sudden reversals for weeks with hopes rising and falling for the Strait of Hormuz to fully reopen and allow production of oil and natural gas to kick back into gear. Brent oil has gone from roughly US$70 per barrel before the war in late February to more than US$119 at times.

If oil prices stay high and keep upward pressure on inflation, the U.S. Federal Reserve would have a tough time resuming its cuts to interest rates to help the slowing economy, even if the job market weakens.

A growing number of Fed officials seem to be considering the possibility of a hike in rates, according to minutes of their latest meeting released on Wednesday.

On the TSX, the technology sector was the biggest weight on the overall index, with Shopify Inc. shares losing 6.52 per cent on the day.

Despite gains in the price of oil, the energy sector also finished in negative territory.

“I think it’s just the energy sector, perhaps giving back some of the gains that have been accumulated over the past couple of days to couple of weeks on that war premium or war uncertainty,” Petursson said.

The Canadian dollar traded for 72.35 cents US compared with 72.20 cents US on Wednesday.

The June gold contract was up US$40.80 at US$4,818.00 an ounce.

This report by The Canadian Press was first published April 9, 2026.

— With files from The Associated Press.

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