The S&P/TSX Composite Index fell more than 1% on Wednesday, slipping below the 35,000 mark as renewed US–Iran tensions spurred risk aversion. President Trump said the memorandum of understanding with Iran aimed at ending the conflict was “over,” reigniting worries about potential disruptions to global energy supplies. The resulting jump in oil prices revived concerns about energy-driven inflation and the prospect of higher interest rates, putting pressure on financial stocks. Shares of RBC (-1.5%), TD Bank (-3%), and BMO (-2%) all declined.
Mining stocks also came under selling pressure as gold prices retreated and Trilogy Metals (-1%) reported a wider-than-expected second-quarter loss. Agnico Eagle, Barrick, and Wheaton Precious Metals (WPM) each fell around 4%. Technology shares weakened as well, with Shopify down 4%.
Meanwhile, minutes from the Federal Reserve’s June meeting showed policymakers remained divided over the need for additional monetary tightening. Several officials argued that the current policy stance is not sufficiently restrictive, while most also indicated that further rate hikes could be justified if inflation stays elevated.
