The S&P/TSX Composite Index slipped 0.7% to close at 35,125 on Wednesday, as investors weighed the implications of the U.S. Federal Reserve’s latest policy decision. As widely expected, the Fed left its benchmark interest rate unchanged. However, its accompanying projections were interpreted as more hawkish than anticipated, with roughly half of FOMC members now signaling at least one additional rate hike this year. The Fed also sharply raised its inflation forecasts, pushing Canadian bond yields higher and stoking concerns that borrowing costs could remain elevated for longer.
Financials were mixed, with TD Bank advancing 1.2% while Brookfield slipped 1.1%. Energy stocks dragged on the broader index as crude prices hovered near a three‑month low, pressured by the potential reopening of the Strait of Hormuz and a warning from the International Energy Agency about a possible supply overhang next year. Canadian Natural Resources retreated 1.4%, and Suncor fell 2.5%. Mining names also weakened alongside lower gold prices, with Barrick Gold down 2.6% and Wheaton Precious Metals off 0.8%.
