The S&P/TSX Composite Index rose by 191.21 points, closing at 35,697.49 on Friday. This market recovery was fueled by a resurgence in technology stocks and a cooling in energy markets, according to The Canadian Press.

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The tech-led rally as oil settles at US$100.05

Technology companies provided a significant boost to Canadian equities on Friday, helping the primary stock index end a recent period of weekly declines. This sector-specific strength helped offset volatility in other areas of the market as investors sought growth opportunities.

Oil prices saw a retreat after crude briefly breached the US$100 threshold on Thursday. The October contract finished at US$100.05 a barrel, representing a decrease of US$2.43 . This movement comes as the ongoing conflict between the United States and Iran continues to exert pressure on global energy markets, creating a landscape where energy prices remain highly sensitive to geopolitical shifts.

Trade friction intensifies with Trump's new import bans

Trade tensions between Canada and the United States remain a primary source of market uncertainty for Canadian investors. President Donald Trump recently signed executive orders that will prohibit the import of specific Canadian goods later this month. In response to earlier U.S. tariffs,Ottawa has also implemented its own retaliatory tariff measures.

While market participants have noted that Canadian officials have maintained a measured response to these newest restrictions, the potential for escalating trade barriers remains a significant risk. The ongoing dispute creates a complex environment for businesses that rely on cross-border supply chains and integrated North American markets.

Mark Carney's US$1 trillion investment target in Toronto

Prime Minister Mark Carney will lead efforts to bolster domestic economic activity at the Canada Investment Summit in Toronto this coming Monday. The summit aims to secure US$1 trillion in total investment for Canada over the next five years . This ambitious initiative is designed to expand economic capacity and mitigate the risks posed by current international trade conflicts.

The summit comes at a critical time as policymakers and business leaders attempt to encourage increased capital spending. By focusing on domestic investment, the Canadian government hopes to create a buffer against the volatility currently seen in global trade and energy sectors.

The 3% inflation target and the Federal Reserve's Wednesday decision

Investors are closely watching the upcoming consumer price index report from Statistics Canada, which is due to be released on Monday. As reported by Reuters, economists surveyed by LSEG Data & Analytics expect annual inflation to hold steady at 3% for August. This figure will be a decisive factor for domestic monetary policy and interest rate expectations.

A major unanswered question remains: will the actual inflation data exceed the 3% forecast? If the report shows higher-than-expected inflation, it could trigger a rise in Canadian bond yields, placing additional pressure on rate-sensitive sectors such as real estate investment trusts, utilities, and telecommunications companies. furthermore, the global market is awaiting the Federal Reserve's policy decision on Wednesday. While U .S. markets rose on Friday, analysts are still weighing whether the central bank will maintain its restrictive policy or face increased pressure to adjust rates in response to recent inflation data.