Investing.com - Canada’s main stock exchange were higher on Tuesday, as investors eyed domestic inflation data and watched out for any potential trade deals.

By 11:45 ET, the S&P/TSX 60 index standard had gained 5 points, or 0.3%.

The S&P/TSX Composite index rose by 105.9 points or 0.4%, following closed markets on Victoria Day Monday.

Canada’s main stock exchange previously logged a record high on Friday, fueled in large part by easing trade tensions between the U.S. and China.

Over the weekend, Canadian Prime Minister Mark Carney held talks over fair trade policies with U.S. Vice President JD Vance, according to Vance’s office, as the two sides face a lingering dispute over tariffs.

Finance leaders from the Group of Seven countries will meet in Canada this week, although media reports suggest that the U.S. Treasury Department does not expect to announce any trade deals at the event.

CPI

Canadian inflation cooled more than expected in April, with the Consumer Price Index rising 1.7% from a year earlier, down from 2.3% in March, but higher than estimates of a 1.6% increase. A Statistics Canada report shows deceleration was largely driven by a steep 12.7% drop in energy prices, headlined by an 18.1% year-over-year decline in gasoline.

Excluding energy, however, inflation remained higher at 2.9%, up from 2.5% in March, underscoring persistent underlying price pressures. On a monthly basis, the CPI fell 0.1%, with the seasonally adjusted figure declining 0.2%.

U.S. indices subdued

Meanwhile, U.S. stock indexes drifted mostly lower.

At 11:50 ET, the Dow Jones Industrial Average was down 95.4 points or 0.2%, the S&P 500 slipped 21 points, or 0.35%, and the Nasdaq Composite dropped 75.8 points, or 0.4%.

The main averages on Wall Street closed higher on Monday, rebounding from an initial dip following Moody’s credit rating slash late last week. The benchmark S&P 500 index recorded its sixth straight positive session, rebounding so that the benchmark index is now just 3% from its record high.

Investors will Tuesday be focusing on earnings from the retail sector, as these numbers could provide some clues about the strength of the U.S. economy.

Home Depot (NYSE: HD ) reported first quarter fiscal 2025 results that exceeded revenue expectations but fell short on earnings, while reaffirming its full-year outlook. The stock rose in premarket trading following the announcement.

The world’s largest home improvement retailer posted revenue of $39.86 billion, surpassing analyst estimates of $39.25 billion and representing a 9.4% increase year-over-year. Adjusted earnings per share came in at $3.56, compared with the consensus estimate of $3.59.

Comparable sales decreased 0.3% overall but rose 0.2% in the U.S. Foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points.

Meanwhile, Bloomberg News reported that the retailer’s CFO said the company won’t raise prices due to tariffs. Any commentary from the company on its pricing strategy will potentially be under close scrutiny, especially after peer Walmart (NYSE: WMT ) said last week that it would likely hike prices soon due to cost pressures from Trump’s aggressive levies.

Oil inches lower

Oil prices traded lower as traders digested signs of a faltering U.S.-Iran nuclear deal, while the prospects of negotiations toward a Russia-Ukraine ceasefire weighed on the sentiment.

At 11:50 ET, Brent futures had dropped by 0.8% to $65.03 a barrel, and U.S. West Texas Intermediate crude futures had declined by 0.7% to $61.70 per barrel.

Iran on Monday reaffirmed that its uranium enrichment program is “absolutely non-negotiable,” a stance that continues to be a sticking point in nuclear negotiations with the United States. A successful agreement could lead to the easing of sanctions and an increase in Iranian oil exports, impacting global energy markets.

Investors are also monitoring the conflict in Ukraine closely, as a resolution could impact energy markets and geopolitical stability. Following a phone call with Russian President Vladimir Putin on Monday, Trump said Russia and Ukraine had agreed to immediate ceasefire talks. However, the Kremlin flagged that such talks would take time, while Trump indicated that he would not be willing to join some European countries in putting pressure on Moscow through fresh sanctions.

Gold steadies

Gold prices rose as markets assessed a downgrade by Moody’s of its U.S. credit rating, ongoing tariff developments, and possible Russia-Ukraine peace talks.

Spot gold had increased by 1.5% to $3,278.80 an ounce by 11:50 ET, while gold futures rose by 1.5% to $3,280.89 an ounce.

Moody’s lowered the U.S. sovereign credit rating to "Aa1" from "Aaa" on Friday, bolstering safe-haven demand and giving some lift to gold on Monday.

Several Federal Reserve officials are due to speak on Tuesday, possibly offering more insight into their projections for the broader economy. Fed speakers earlier this week seemed to view the ramifications of Moody’s downgrade cautiously.