The S&P/TSX Composite Index surrendered early gains and hovered slightly below the flatline at 36,650, as declines in heavyweight bank stocks offset advances among gold producers while investors digested fresh trade policy developments. US President Trump paused the planned 50% tariffs on select Canadian goods and signaled that a trade agreement with Canada was close, though reports indicated that tariffs on metals would remain in place.
Financials led the downturn, even as the US Treasury doubled the size of its bond and note buyback program in an effort to ease recent upward pressure on North American bond yields. Shares of BMO, TD Bank, and RBC each fell more than 3%. In contrast, gold prices rallied on the back of a weaker US dollar and lower yields, boosting the materials sector. Gold miners were among the strongest performers, with Agnico Eagle, Wheaton, and Barrick rising between 5% and 10%.