TSX Slips While U.S. Markets Extend Rally on Nvidia-Led Gains

Canadian and U.S. stock markets closed Monday on a mixed note, with Wall Street extending its record-setting run while Canada's benchmark index edged lower amid weakness in financial and mining shares.In Canada, the S&P/TSX Composite Index fell 0.1% to close at 34,734.89. Losses in heavyweight banking and mining stocks weighed on the market as investors reacted to renewed geopolitical uncertainty in the Middle East. Rising tensions boosted oil prices but dampened overall risk appetite, limiting gains in other sectors.The Canadian dollar was trading at 72.24 cents US.ON BAY STREETThe TSX Venture Exchange was up 13.67 points, or 1.35%, to 1,025.18.Six of the 12 TSX subgroups were positive on Monday, led by tech stocks, up 5.97%, energy stocks were ahead 2.12% and telecom issues were up 0.50%.On the downside - gold issues shed 2.64%, material stocks dipped 1.55% and financial issues sank 1.33%.ON WALL STREETSouth of the border, U.S. markets continued their upward march, driven largely by technology stocks and ongoing enthusiasm surrounding artificial intelligence. The S&P 500 rose 0.3% to a fresh record close of 7,599.96, while the Nasdaq Composite gained 0.4% to 27,086.81, also setting a new high. The Dow Jones Industrial Average added 0.1% to finish at 51,078.88.Technology shares were the standout performers after Nvidia (NVDA) unveiled a new AI-focused personal computer chip developed in partnership with Microsoft (MSFT). Nvidia surged more than 6%, while Microsoft advanced over 2%, helping lift the broader technology sector by approximately 2.5%. The announcement reinforced investor optimism that AI-related spending will continue to drive earnings growth across the sector.Markets also monitored developments in U.S.-Iran negotiations. While hopes for a diplomatic resolution provided some support to equities, renewed uncertainty surrounding talks pushed crude oil prices higher, raising concerns about future inflation pressures. Energy stocks benefited from the jump in oil prices, although higher fuel costs weighed on some transportation and consumer-related shares.Investors are now turning their attention to a busy week of economic data, including the U.S. employment report and other key indicators that could influence the Federal Reserve's outlook on interest rates. Market participants will also be watching corporate earnings and developments in the AI sector, which continues to be a major driver of market sentiment.Despite geopolitical uncertainty and rising oil prices, North American equities remain near historic highs, supported by resilient corporate earnings, strong technology performance, and continued investor confidence in the economic outlook.