TSX rises on materials and financials strength, U.S. markets post mixed results

TORONTO – Canada’s main stock index gained ground Wednesday, helped by strength in the basic materials and financial sectors, while U.S. markets were mixed.   

The S&P/TSX composite index was up 186.22 points at 36,662.14.  

Philip Petursson, chief investment strategist at IG Wealth Management, said the TSX was outperforming the S&P 500. He said the basic materials sector benefited from rising gold prices. The December gold contract was up US$26.40 at US$4,467.50 an ounce.

“Gold has been up and down over the last little while, but from a technical perspective it looks like gold producers have broken the downward trend and they’re starting to nudge higher and it wouldn’t surprise us to see them reclaim their prior highs of earlier this year,” Petursson said. 

He said he was surprised by the strength in Canadian banks, which benefited from Fitch reaffirming its ratings for Canadian banks.

“The markets are taking any positives out there and pricing it into stocks, whatever sectors those may be,” he said. 

Petursson said Canadian banks have been trading at a premium to U.S. peers, raising questions about how long the rally can continue. 

“There’s nothing wrong with the banks per se. In fact, I think the banks are solid businesses,” he said. 

“It’s just the price that investors are willing to pay for these banks seems a little stretched and perhaps worrisome at this point in time.” 

Elsewhere, Air Canada shares jumped 12.25 per cent after it announced the sale of a 25 per cent stake in its Aeroplan loyalty program for $2.5 billion. 

Air Canada plans to use proceeds from the deal to repay $1.7 billion in bonds and buy back up to $800 million in shares in September as it looks to shore up its finances.

The company announced the Aeroplan deal alongside its financial results. 

The cash infusion comes after Air Canada reported a net loss of $178 million for its latest quarter, versus $186 million in profit a year earlier.

Much of that loss boils down to fuel. About 50 per cent of the airline’s tickets for the three months between April and June were already booked when the United States and Israel launched attacks on Iran in late February, said the company’s chief financial officer John Di Bert.

“Airlines are tricky, but over the last little while we’ve seen strong consumer demand and that has driven up the profitability of the airlines, and they’ve been able to pass on the … fuel surcharges as a result of higher jet fuel prices coming as a second derivative of the war in Iran with relative ease,” Petursson said. 

The September crude oil contract was up seven cents US at US$83.27 per barrel.

The rise in oil prices has come as a result of the “back and forth” in the war between the U.S. and Iran, with a resolution appearing to be further away. 

“We believe the market is coming to the realization that there’s been enough damage done in terms of the supply chain of oil that probably US$70 is going to be the floor,” Petursson said. 

In New York, the Dow Jones industrial average was down 21.58 points at 53,770.27. The S&P 500 index was up 20.30 points at 7,748.50, while the Nasdaq composite was up 143.04 points at 26,588.49.      

The Canadian dollar traded for 71.79 cents US compared with 71.80 cents US on Tuesday. 

This report by The Canadian Press was first published Aug. 12, 2026.

—With files from The Associated Press

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