04:20 PM EDT, 06/29/2026 (MT Newswires) -- The Toronto Stock Exchange dropped on Monday as losses in telecom, industrial and utility stocks outweighed gains in healthcare and financials, while investors look ahead to a busy week of economic data, including Canada's April GDP report.

The S&P/TSX Composite Index closed down 156.18 points, or 0.45%, to 34,823.82, with a majority of sectors ending lower.

Health Care led gainers, up 0.56%, with Battery Metals Index and Financial, up 0.21% and 0.33%, respectively. Telecom led decliners, down 1.38%, while Information and Technology, down 0.23%, Base Metals, down 0.03%, Energy, down 0.08%, Industrials, down 0.48%, and Utilities, down 0.65%.

In commodities, gold prices eased on Monday on rising Treasury yields even as the dollar weakened. The precious metal for August delivery was last seen down 1.3% to $4,058.50. However, despite the drop, the price of the precious metal is sticking above the seven-month low touched on Thursday that followed a report of yet another monthly rise in U.S. inflation, pushing the dollar higher on expectations higher interest rates are coming.

Meanwhile, West Texas Intermediate (WTI) crude oil closed higher on Monday after the U.S. and Iran agreed to halt the weekend strikes that had threatened their ceasefire. WTI crude oil for August delivery closed up 2.2% to settle at $70.75 per barrel, while August Brent oil was last seen up 1.4% to $73.03.

On the trade front, Ontario moved to boost bilateral ties with another US state as tariff-related uncertainty continued to impact cross-border relations. Ontario signed an initial agreement with Utah on Monday to strengthen trade ties, extending a series of bilateral agreements the province has reached with US states since trade tensions escalated, Chris Fox of CTV News reported.

Premier Doug Ford and Utah Governor Spencer Cox signed the pact while attending the annual meeting of Western U.S. governors in Deer Valley, Utah.

"Canada and the United States are always stronger when we work together to increase cooperation, collaboration and trade so we can grow the economy on both sides of the border," Ford said in a news release. "With nearly $7 billion in annual trade between Ontario and Utah already, today's agreement will help deliver new opportunities for our province's world-class workers and companies and create lasting prosperity in both regions," he added.

On the economic front, National Bank said the latest Statistics Canada data pointed to mounting strains in Canada's manufacturing sector despite broader economic resilience.

The agency's firm count data published Monday negates the argument that the country has remained "broadly resilient" because the effective U.S. tariff rate on its exports is relatively low, writes National Bank in a note.

While that claim may hold at the aggregate level, the same doesn't apply for sectors like manufacturing, which are most exposed to trade friction, sayid chief economist Stefane Marion. National Bank's Hot Chart showed that the number of active manufacturing firms in Q1 fell to its lowest level in at least 10 years, outside the COVID-19 collapse, even though firm counts across all other industries are much closer to cycle highs.

Looking ahead, Scotiabank said Canada's economy likely continued to expand in May, with early indicators pointing to another monthly gain in GDP.

Statistics Canada's preliminary estimate for May gross domestic product is expected to show another monthly gain after an advance estimate pointed to 0.4% month-over-month growth in April, Scotiabank said in a note.

"As for May's preliminary estimate, I'm tracking another gain based on more limited readings. Hours worked were up by 0.6% m/m SA which is a solid plus given that GDP is hours worked times labour productivity," wrote Head of Capital Markets Derek Holt.

Additionally, BMO Capital Markets said Canada's economy likely rebounded modestly in April ahead of this week's GDP report. Canada's economy might have "rebounded modestly" in the monthly GDP release for April due out on Tuesday as the week's key data point, BMO Capital Markets said in a note.

"After successive quarterly declines, the economy likely rebounded slightly in Q2 (around 1% annualized)," Senior Economist Sal Guatieri said in the note. "The May flash estimate could point to continued growth given reported advances in retail and manufacturers' sales."

Also on the agenda for this week is a deadline over the Wednesday formal review date for the U.S.-Canada-Mexico trade agreement. "We're not holding our breadth for a quick resolution," the economist said, adding that trilateral talks have yet to begin.