The S&P/TSX Composite Index fell nearly 1% on Thursday, dipping below 35,500 as escalating tensions in the Middle East and renewed concerns over AI-related spending weighed on sentiment. Oil prices jumped following new strikes near the Strait of Hormuz, stoking fears of supply disruptions, adding to inflation worries, and bolstering expectations that central banks will maintain a hawkish policy stance.
Financials retreated, with Royal Bank of Canada and TD Bank each declining close to 2%, while Bank of Montreal and Scotiabank dropped more than 1%. Weaker gold prices pressured miners: Agnico Eagle slid about 2%, and Barrick Gold and Wheaton Precious Metals each fell more than 1.5%.
Technology shares also came under pressure after recent Big Tech earnings reignited concerns about heavy capital expenditures tied to artificial intelligence. Shopify lost more than 2%, and Constellation Software declined over 2.5%.
On the upside, several companies topped profit expectations, including Waste Connections (+1.4%), Mullen Group (+4.5%), and Teck Resources (+5%). Cenovus Energy (+2.6%) and Ovintiv (+3%) are scheduled to report later today. Elsewhere, Panama is weighing a potential partnership with First Quantum Minerals (-0.6%) to reopen the Cobre Panama mine.
