TSX Composite Index Recap - March 9

The TSX Composite Index ended the trading day up 0.3% at 33,189.32, after experiencing a sharp decline earlier in the day. The index's intraday low was its lowest level since February 6.

Market Performance

• Technology sector gained 2.4%, with Celestica shares increasing by 7.1%.
• Materials group rose 0.7%, driven by higher copper prices.
• Energy sector ended 0.4% higher.
• Financials sector lost 0.6%, despite the overall market's positive close.

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Oil Market Reaction

• U.S. crude oil futures fell 6% to $85.45 per barrel, after reaching a near four-year high of $119.48 earlier in the day.
• The price drop was attributed to speculation that the U.S.-Israeli war on Iran could soon end, and that the Trump administration may reduce oil sanctions on Russia to cool a surge in global energy prices.

Economic Implications

• A prolonged spike in energy costs could revive inflation pressures and even raise the risk of stagflation, according to Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth. The key issue is how long the price shock lasts and how much damage it inflicts before easing.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline