The S&P/TSX Composite Index declined more than 0.5% on Tuesday, slipping below 34,500, as broad-based weakness in mining, energy, and technology stocks weighed on the market.
Mining shares retreated as gold prices fell amid expectations that the Federal Reserve will maintain a hawkish policy stance. Agnico Eagle and Wheaton Precious Metals (WPM) each lost about 3%, while Franco-Nevada and Barrick Gold dropped roughly 2.5%.
Energy stocks also came under pressure as oil prices pulled back after Israel and Iran agreed to halt attacks following a renewed flare-up in hostilities. Canadian Natural Resources and Suncor Energy both fell around 3%.
In the technology sector, Shopify declined about 1.5%, while Celestica slumped 7% as investors took profits following its recent AI-fueled rally.
Investors were also focused on Wednesday’s Bank of Canada policy announcement, with markets widely expecting policymakers to leave interest rates unchanged.
Meanwhile, prospects for progress in US–Iran negotiations deteriorated after President Trump accused Iran of shooting down a US helicopter patrolling the Strait of Hormuz and vowed to retaliate, further clouding the geopolitical backdrop.
