Canada’s main stock index surged over 300 points on Friday, reaching a two-week high as gains in the basic materials sector drove market momentum. The S&P/TSX Composite Index climbed 308.17 points to close at 35,274.84, with mining companies benefiting from rising gold prices. The August gold contract increased by US$61.60, settling at US$4,187.30 an ounce.

The boost in gold prices followed a weaker-than-expected U.S. jobs report released Thursday, which showed 57,000 new positions added in June, falling short of the anticipated 100,000 and marking a slowdown from May’s figures. Allan Small, senior investment adviser at iA Private Wealth, noted that the subdued job growth could ease inflationary pressures. Inflation concerns have mounted worldwide, partly due to elevated oil prices linked to the ongoing conflict involving Iran.

Oil prices moderated Friday, with the August crude contract edging up nine cents to US$68.78 a barrel, supporting modest gains in Canada’s energy sector. However, geopolitical tensions remain elevated as Iran’s joint military command issued a warning that all tankers navigating the crucial Strait of Hormuz must follow approved routes or face a forceful response. This ultimatum comes amid reports that Iran is asserting control over maritime traffic, including claims of imposing tolls on passing vessels—allegations the United States denies. The recent death of Iran’s Supreme Leader and the interruption of U.S.-Iran negotiations have further contributed to uncertainties in the region.

Meanwhile, Small highlighted caution among investors regarding the stock market’s future trajectory. He pointed to the technology sector’s strong performance, particularly in artificial intelligence and memory chip companies, but questioned how long these gains can be sustained amid growing skepticism about ongoing profitability.

The Canadian dollar traded slightly lower, changing hands at 70.42 U.S. cents compared with 70.52 cents on Thursday. Commodity price movements reflected incomplete trading activity due to U.S. markets being closed for the Independence Day holiday.

Across the Atlantic, European markets continued their upward trend. The pan-European STOXX 600 index hit an intraday record high and posted its largest weekly gain since mid-May, closing up 0.7% at 652.35. Germany’s DAX index also reached a historic high, finishing the day 0.8% higher. Shares of German industrial conglomerate Siemens rose 2.6% following a broker upgrade from “reduce” to “hold.”

David Morrison, senior market analyst at Trade Nation, attributed European market strength to lower valuations and reduced exposure to high-flying technology shares compared to U.S. indexes. He said investors are increasingly attracted to “tech-lite” European stocks, which trade at more modest multiples than their American counterparts.

The market developments underscore a cautious yet broadly optimistic sentiment amid shifting global economic indicators and geopolitical challenges.