Canada Stocks: TSX pulls back from record high as tech shares fall

Constellation Software

26/05/2026 21:28

Updates at market close
TSX ends down 0.5%, at 34,653.87
Snaps daily winning streak
Technology falls 1.6%, financials lose 0.6%
Canada's major banks seen reporting higher profits
By Tharuniyaa Lakshmi and Fergal Smith

    May 26 (Reuters) - Canada's main stock index gave back some recent gains on Tuesday as investors grew more cautious about prospects for an early deal to end the Iran war, with technology and financial stocks losing ground.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 177.02 points, or 0.5%, at 34,653.87, after posting four straight days of gains including a record closing high on Monday.

        Iran said the United States had violated a ceasefire after the U.S. conducted what it called defensive strikes in southern Iran, while U.S. Secretary of State Marco Rubio said negotiating a deal to halt the conflict could "take a few days".
"There's a sense of political exhaustion setting in," said Shiraz Ahmed, founder at Sartorial Wealth. "But Canadian investors are trying to continue with their long-term growth plans like most other environments we've seen in the past."
The technology sector .SPTTTK fell 1.6%, with shares of Constellation Software down 3.2%.
Financials .SPTTFS, the most heavily weighted sector by far, ended 0.6% lower.

        Canada's largest banks are due to begin reporting quarterly results on Wednesday. Their profits are expected to have increased despite trade tensions, the Iran war and broader economic uncertainty, but now face tougher tests as more consumers struggle to pay debts and a subdued housing market weighs on their core domestic business.
Consumer staples .GSPTTCS fell 1.8% and the materials group .GSPTTMT, which includes metal mining shares, was down 0.9%.
The price of gold XAU= fell 1.4%, while oil CLc1 settled 2.8% lower at $93.89 a barrel after clawing back some earlier declines.
Energy .SPTTEN added 0.3%, recouping some of Monday's sharp losses.
Canada will sign a large-scale LNG agreement with Germany's SEFE for liquefied natural gas from the Ksi Lisims planned export facility on the coast of British Columbia, according to an industry source.

(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Diti Pujara and Will Dunham)
((fergal.smith@thomsonreuters.com; +1 647 480 7446))