Tech Stocks Lift U.S. and Canadian Markets as Gold and Silver Surge

North American stock markets started the week on a positive note as technology stocks rebounded strongly, helping push both U.S. and Canadian indexes higher. At the same time, a powerful rally in gold and silver prices boosted basic materials stocks, adding another layer of support to the broader market.

After a turbulent stretch marked by sharp pullbacks—especially in software and high-growth names—investors appeared eager to step back in. Monday’s gains reflected a mix of bargain hunting, renewed confidence in artificial intelligence (AI), and a growing appetite for hard assets amid lingering economic uncertainty.

Tech Stocks Lead the Recovery

Technology shares were the clear driver of market momentum. According to Kathryn Del Greco, senior investment adviser at TD Wealth, last week’s pullback created attractive entry points for investors who had been sitting on the sidelines.

“There’s definitely some bargain hunters stepping into the market today,” Del Greco said, noting that tech stocks were coming off a particularly challenging period.

The rebound was most visible in the United States, where chipmakers and AI-related companies helped lift major indexes. Nvidia climbed 2.5%, while Broadcom surged 3.4%, making them two of the most influential contributors to gains in the S&P 500. These stocks have become symbolic of the broader AI trade, which continues to attract enormous investor interest despite growing questions about valuations.

Del Greco explained that many investors still believe the long-term AI growth story remains intact, even if short-term volatility persists.

“After last week’s big correction, I think there’s some money looking to deploy as this AI trade continues to play out,” she said.

Market Numbers at a Glance

By the close of trading:

• The S&P/TSX Composite Index jumped 552.34 points, finishing at 33,023.32, reflecting strength across technology and materials sectors.

• In New York, the Dow Jones Industrial Average edged up 20.20 points to 50,135.87.

• The S&P 500 gained 32.52 points, closing at 6,964.82.

• The Nasdaq Composite, heavily weighted toward tech stocks, climbed 207.46 points to 23,238.67.

The U.S. market was building on momentum from the previous week, which marked its best single-day performance since May. Still, investors remain cautious, aware that record-high valuations and massive capital spending by technology firms could introduce new risks.

Are Tech Stocks Too Expensive?

Despite Monday’s rally, concerns haven’t disappeared. A growing number of analysts worry that equity prices—particularly in the tech sector—may be running ahead of fundamentals.

One key question continues to hang over the market: Will massive investments in artificial intelligence actually deliver the profits investors expect?

Big tech companies have committed hundreds of billions of dollars to AI infrastructure, data centers, and semiconductor development. While revenue opportunities are enormous, profitability timelines remain uncertain. Any disappointment in earnings or guidance could quickly reignite volatility.

That said, Monday’s market action suggested investors are not ready to abandon the AI narrative just yet. Instead, many appear willing to tolerate short-term uncertainty in exchange for potential long-term gains.

Canada Rides the U.S. Tech Wave

Canadian technology stocks benefited from what Del Greco described as a spillover effect from the U.S. rally.

“You’re going to look for where there are opportunities,” she said. “The tech sector’s having a very nice recovery day in the U.S., and that’s certainly going to pull along Canada as well.”

As U.S. tech leaders regained momentum, Canadian investors followed suit, lifting domestic tech names and contributing to the strong performance of the TSX.

Dow 50,000: A Psychological Milestone

Last week’s historic moment—when the Dow Jones Industrial Average surpassed 50,000 points for the first time—also continues to shape investor sentiment.

Del Greco emphasized that the Dow’s milestone matters because it represents a broader cross-section of the economy, not just technology giants.

“For the last couple of years, it’s all been about the S&P 500 and the Nasdaq,” she said.

“When you see the good ol’ Dow reaching a new all-time high, it shows a broadening out of the market, which is extremely healthy for the sustainability of this bull market.”

This broader participation could help reduce the market’s reliance on a handful of mega-cap tech stocks—something many analysts see as a positive sign for long-term stability.

Precious Metals Shine Amid Volatility

While tech stocks grabbed headlines, precious metals delivered some of the day’s most dramatic moves.

• Gold rose 2%, continuing a volatile run after nearly doubling in price over the past year.

• Silver jumped an eye-catching 6.9%, highlighting strong speculative and industrial demand.

The April gold contract gained US$99.60, settling at US$5,079.40 an ounce, while the March silver contract surged US$5.34 to US$82.23 an ounce.

Rising precious metal prices helped lift Canada’s basic materials sector, offering diversification benefits at a time when equity markets remain sensitive to inflation data, interest-rate expectations, and geopolitical risks.

Oil and Currency Movements

Energy markets also posted gains, with the March crude oil contract climbing 81 cents to US$64.36 per barrel. Meanwhile, the Canadian dollar strengthened, trading at 73.66 cents U.S., up from 73.27 cents on Friday.

These movements reflect shifting expectations around global growth, central bank policy, and commodity demand.

What This Means for Investors

Monday’s rally highlights a market still searching for balance—caught between optimism about innovation and caution about valuations.

Key takeaways for investors include:

• Tech remains the market’s growth engine, but volatility is likely to persist.

• AI enthusiasm is alive, though scrutiny around profits is intensifying.

• Precious metals are regaining attention as hedges against uncertainty.

• Broader market participation, signaled by the Dow’s milestone, could support a more sustainable bull run.

Bottom Line

The start of the week brought a welcome dose of optimism to North American markets. With technology stocks rebounding and precious metals surging, investors appear willing to lean back into risk—at least for now.

Still, the road ahead remains complex. Valuations are high, expectations are elevated, and the success of massive AI investments is far from guaranteed. For investors, the coming weeks may test whether Monday’s rally marks the start of a more durable recovery—or just another pause in an increasingly volatile market cycle.