Major Indexes Struggle as Oil Price Surges
The Canadian Vanguard Stock Market Report – Wednesday March 4, 2026 Edition.
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The Toronto Market
The S&P/TSX Composite Index reversed yesterday’s performance and slumped 332.89 points, or 0.98%, to close at 33,609.97 today. Overall, the market was broadly negative throughout the day.
The index was down as much as 600 points in the early afternoon, and condition looked quite dismal. However, as the session entered its final hour, the market began to recover, climbing about 200 points during the last hour of trading.
Despite the late rebound, the Toronto market has now experienced two major declines within the last three trading sessions.
Today’s TSX Market Statistics and Analysis
Trading on the Toronto Stock Exchange (TSX) reflected broadly negative market sentiment, as declining issues significantly outnumbered advancing issues. The session recorded 1,615 decliners versus 569 advancers, resulting in a decliner-to-advancer ratio of 2.83:1, with 121 securities remaining unchanged. This imbalance indicates widespread selling pressure across the market.
Market breadth was further illustrated by the distribution of new highs and lows. The TSX posted 59 new 52-week highs and 18 new 52-week lows, compared with 54 new highs and 9 new lows in the previous session. While the increase in new highs suggests that pockets of strength remain in select sectors, the rise in new lows signals growing downside momentum among weaker securities.
Total trading volume reached 534,555,474 shares, representing an 18% increase from the 450,725,024 shares traded in the prior session. The combination of higher trading volume and a strong skew toward declining issues suggests that selling activity intensified during the session, reflecting heightened investor caution.
Today’s Toronto Market Wrap-Up Report
Market Overview
The Canadian equity market closed lower in today’s session, with the Toronto Stock Exchange (TSX) declining by nearly 1% amid broad-based weakness across most sectors. Market breadth was notably negative as declining stocks significantly outnumbered advancing stocks, while trading volume increased by approximately 18%, indicating elevated selling pressure and heightened investor activity.
Investor sentiment appeared cautious throughout the session, partly reflecting market sensitivity to ongoing geopolitical tensions in the Middle East, which continue to contribute to a more risk-averse environment across global markets.
Sector Performance
Sector performance was mixed but largely negative. Technology emerged as the top-performing sector, advancing 4.23% for the second consecutive session, supported by strength in select growth-oriented names.
However, overall sector breadth remained weak, with only three major sectors finishing the day in positive territory:
- Technology: +4.23%
- Energy: +0.56%
- Utilities: +0.21%
In contrast, Basic Materials posted the largest decline, falling 4.01%, reflecting pressure in commodity-linked equities. Meanwhile, the Financials sector declined 0.86%, contributing to the broader market’s downward move.
Notable Stock Movers
Shares of Shopify Inc. (TSX: SHOP) were among the session’s standout performers, extending gains for a second consecutive trading day. While two strong sessions are not sufficient to establish a sustained trend, the recent momentum suggests the stock could be entering a short-term recovery phase, making it a name worth monitoring for continued upside follow-through.
Commodities and Precious Metals
Precious metals have softened over the past several sessions, with both gold and silver prices trending lower recently. Despite this short-term weakness, gold’s role as a defensive asset during periods of economic uncertainty remains intact. Should geopolitical tensions or trade-related concerns intensify, gold prices could regain upward momentum.
Against this backdrop, Agnico Eagle Mines Limited (TSX: AEM) remains a stock to watch. Although the shares have declined over the past four trading sessions, the stock continues to trade above its 50-day moving average, suggesting that its intermediate-term technical trend remains constructive.
Stocks to Watch
Two resource-focused companies that may merit attention on investor watchlists include:
- Nutrien Ltd. (TSX: NTR)
- Canadian Natural Resources Limited (TSX: CNQ)
Notably, CNQ shares rose 2.86% to close at $61.96, despite the broader market weakness. Trading activity was particularly strong, with 22.6 million shares changing hands, significantly above the stock’s 50-day average volume of approximately 12.1 million shares. The elevated trading volume may signal increased institutional interest or accumulation.
Closing Takeaway
Overall, today’s session was characterized by negative market breadth, higher trading volume, and selective pockets of sector strength. While weakness in commodity-linked sectors weighed on the broader market, resilience in technology stocks and strong activity in select energy names suggest that investor capital is becoming increasingly selective in the current risk environment.
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The US Markets
U.S. Market Indexes
The Dow Jones Industrial Average fell 784.67 points (-1.61%), closing at 47,954.74.
The S&P 500 declined 38.79 points (-0.56%) to finish the session at 6,830.71.
The Nasdaq Composite dropped 58.50 points (-0.26%), ending the day at 22,748.99. Despite the decline, the Nasdaq staged a strong recovery during the final hour of trading, closing well above its intraday lows. Earlier in the afternoon, the index had been down nearly 300 points before gradually climbing higher late in the session, making it the best-performing major index of the day.
The Russell 2000 Index declined 50.44 points (-1.91%) to close at 2,585.57. The overall session was broadly negative, with small-cap stocks experiencing the largest losses among the major indexes, making the Russell 2000 the session’s weakest performer.
Today’s U.S. Market Statistics
New York Stock Exchange (NYSE): Market breadth on the NYSE was notably negative, as declining issues significantly outnumbered advancing issues. The session recorded 3,547 decliners and 1,037 advancers, with 339 securities unchanged, resulting in a decliner-to-advancer ratio of 3.42:1—or roughly three decliners for every advancer.
The exchange reported 107 new 52-week highs and 77 new 52-week lows, compared with 74 new highs and 19 new lows in the previous session, indicating a notable increase in downside pressure among individual stocks.
Total NYSE trading volume reached 6,107,771,780 shares, representing a 13% increase from the 5,389,985,459 shares traded in the prior session, suggesting elevated trading activity amid the broader market weakness.
NASDAQ Stock Market: Market breadth on the Nasdaq was also negative, though less severe than on the NYSE. Declining stocks outnumbered advancing stocks, with 3,432 decliners and 1,389 advancers, while 290 securities remained unchanged. This produced a decliner-to-advancer ratio of 2.47:1, or approximately five decliners for every two advancers.
The exchange recorded 65 new 52-week highs and 130 new 52-week lows, compared with 95 new highs and 102 new lows in the previous session, reflecting a shift toward greater downside momentum among Nasdaq-listed equities.
Total Nasdaq trading volume amounted to 11,184,541,434 shares, representing a 1% decline from 11,297,395,689 shares traded yesterday.
Today’s U.S. Market Wrap-Up
U.S. equities experienced a volatile and broadly negative session today. The Dow Jones Industrial Average traded down by more than 1,100 points earlier in the day before staging a late-session recovery of over 400 points. The late rally, however, was insufficient to offset the overall losses, reflecting ongoing risk-off sentiment.
Technology stocks showed renewed investor interest after weeks of sector rotation due to high valuations linked to AI deployment concerns. Many technology names that beat earnings expectations recently still experienced declines due to AI-related worries, particularly regarding labor displacement and adoption uncertainty.
A notable exception was Broadcom Inc. (NASDAQ: AVGO), which rose 4.8% to $332.77, marking its second consecutive session of gains following strong earnings reported late Wednesday. Trading volume was 56.6 million shares, indicating solid investor support. Analysts have noted that the rotation from software to semiconductor stocks may be reversing, driven by AI-related sentiment in the market.
The Optical Network Group, previously a top-performing sector due to demand for fiber cabling and related equipment, experienced sharp declines today:
- Ciena Corp.: down 13%, despite reporting earnings above market expectations
- Coherent Corp. (COHR): down 7.66% to $253.80 on 8.8M shares traded
- Lumentum Holdings Inc. (LITE): down 4.4% to $650.82, with 6.7M shares traded; adoption of fiber to replace copper remains several years away
- Corning Inc. (GLW): down 7% to $134.71 on 18.3M shares traded, ranking among the S&P 500’s weakest performers today
Overall, the session highlights the continued influence of AI-related considerations on market rotation, with semiconductor stocks regaining attention while certain software and optical network equities face renewed selling pressure. Investors remain cautious, balancing earnings strength against structural risks related to AI adoption and sector-specific dynamics.
Investor Takeaway
- TSX: Cautious sentiment prevails; watch SHOP, CNQ, and AEM for potential momentum and technical support. Resource and basic materials sectors remain under pressure, while technology shows selective strength.
- U.S.: Volatility remains high. Late-session tech strength and semiconductor rotation (Broadcom) may indicate short-term opportunities, while small-caps and optical network equities highlight sector-specific risk.
- Macro/Geopolitical Considerations: Ongoing Middle East tensions continue to weigh on market sentiment. Investors should maintain selectivity, focus on technical trends, and monitor AI-related sector rotation, particularly in tech and semiconductor stocks.
Overall: Markets remain volatile with selective opportunities. Investors may favor strong technology and large-cap semiconductors while remaining cautious on cyclical or high-volatility sectors.
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(c) This article is published by The Canadian Vanguard on March 5, 2026
