Canadian equities closed modestly lower on Monday, while major U.S. indexes continued edging higher as investors prepared for a busy week of corporate earnings and monitored ongoing geopolitical tensions involving Iran.

The S&P/TSX Composite Index declined by roughly 86 points, ending the session in negative territory. In the United States, the S&P 500 managed another record close, though gains were relatively limited compared with the strong rally seen in recent weeks. The Nasdaq Composite also moved slightly higher, while the Dow Jones Industrial Average finished lower.

Market participants appeared cautious ahead of a major earnings week that includes quarterly reports from several large technology companies, including Amazon, Alphabet, Meta, Microsoft, and Apple.

Strong corporate earnings have played a major role in pushing U.S. markets to record levels in recent weeks, with many companies continuing to outperform analyst expectations.

Oil prices moved higher during the session as concerns surrounding shipping activity through the Strait of Hormuz continued to support energy markets. Traders remained focused on tensions between the United States and Iran, as uncertainty around negotiations and maritime access added to supply concerns.

U.S. crude oil futures climbed above $96 per barrel, while Brent crude prices also posted gains.

Gold prices, however, moved lower during the trading day despite geopolitical uncertainty.

Meanwhile, the Canadian dollar strengthened slightly against the U.S. dollar compared with Friday’s close.

Investors are expected to remain focused on upcoming earnings results, interest-rate expectations, and geopolitical developments as markets attempt to gauge the outlook for economic growth and inflation in the months ahead. BNN