Canadian Market Recovers From Early Setback As Energy Stocks Rise

(RTTNews) - After an early setback, the Canadian stock market's benchmark S&P/TSX Composite Index recovered well and emerged into positive territory Monday morning, thanks to strong gains in energy, communications and industrials sectors.

Materials stocks opened well, but turned easy soon, and are currently showing weakness. A few stocks from the technology space are up with notable gains.

The market started off on a weak note, tracking a sell-off in global markets amid falling risk appetite due to rising tensions in the Middle East.

Tensions run high in the Middle East following the U.S. and Israel's coordinated strikes on Iran and the retaliatory strikes by Tehran on U.S. bases across the region.

Today Israel launched airstrikes on Hezbollah targets in Beirut and other parts of Lebanon following projectile fire from Lebanese territory into northern Israel.

U.S. President Donald Trump suggested the conflict with Iran could go on for the next four weeks, raising concerns about a significant widening of hostilities in the region that could severely disrupt the global supply of crude oil and send prices soaring to levels not seen in years.

The S&P/TSX Composite Index, which dropped to 34,116.15 earlier in the session, losing about 220 points, has recovered to 34,403.00, up 63.01 points or 0.18% from previous close.

Energy stocks are up, tracking higher crude oil prices. WTI crude futures for April climbed to $75.33 a barrel before dropping to around $71.30, still up with a strong gain of about 6.5%.

The Energy Capped Index is up 2.75%. Vermilion Energy, the top gainer in the index, is up 7.3%. Enerflex is gaining about 6.5%. Cenovus Energy, International Petroleum, Suncor Energy, Imperial Oil and Headwater Exploration are up 3%-4.5%.

Among communications stocks, Rogers Communications and Quebecor are gaining 3% and 2.1%, respectively.

Industrials stocks Mda Ltd., Badger Infrastructure, Finning International, Thomson Reuters, Brookfield Business Partners and Aecon are up 2%-4%.

Among tech stocks, Constellation Software is rising 3.2%, and Docebo is up 1.4%.

In economic news, data from S&P Global showed the S&P Global Canada Manufacturing PMI rose to 51.0 in February 2026 from 50.4 in the previous month, marking the second month of improvement and recording a 13-month high.