TSX Rebounds as Hormuz Blockade Spikes Energy and Tech Stocks

The S&P/TSX Composite Index overcame a weak start on Monday to finish the session higher, closing at 33,850.11. The index gained 154.35 points, or 0.46%, recovering significantly from an intraday low of 33,548.01. The recovery was primarily fueled by a sharp increase in crude oil prices. This price action follows an announcement by U.S. President Donald Trump regarding a blockade of maritime traffic to and from Iran through the Strait of Hormuz, coming after peace talks over the weekend failed to reach a resolution. The geopolitical tension has reignited concerns regarding global inflation and economic growth. Technology stocks also provided a strong tailwind, tracking gains in the Nasdaq. The Information Technology Capped Index climbed 4.3%, with Constellation Software leading the way with a 6.7% gain. Other notable performers included Open Text Corporation, Descartes Systems Group, and Shopify, all of which saw significant upward movement. In the energy sector, Tamarack Valley Energy and Athabasca Oil Corp rose 5% and 4.8%, respectively. Meanwhile, MDA Space gained nearly 2% following the introduction of MIDNIGHT, a new space control platform designed for defense organizations to protect low Earth orbit assets. Corporate activity was highlighted by GFL Environmental's agreement to acquire SECURE Waste Infrastructure Corp for C$24.75 per share, representing an enterprise value of approximately C$6.4 billion. While SECURE shares climbed 6.5%, GFL shares tumbled 8% on the news. On the macroeconomic front, Canada reported a decline in building permits for February, which fell 8.4% month-on-month.