The S&P/TSX Composite Index fell 0.8% to close at 35,193 on Thursday, as solid corporate earnings were not enough to offset mounting geopolitical and sector-specific pressures. Escalating tensions in the Middle East and renewed worries over AI-related capital spending weighed on sentiment.
Oil prices jumped following new strikes near the Strait of Hormuz, intensifying fears of supply disruptions. The move stoked inflation concerns and strengthened expectations that central banks will maintain a hawkish stance.
Financials came under pressure, with major banks losing ground: Royal Bank of Canada declined 1.4%, Toronto-Dominion Bank fell 1.7%, and Bank of Montreal dropped 1.3%.
Gold prices edged lower, dragging miners down. Agnico Eagle slipped 1.7%, Barrick Gold lost 0.9%, and Wheaton Precious Metals retreated 1.1%.
Technology stocks weakened after Big Tech earnings reignited concerns about heavy AI-related capital expenditures. Shopify tumbled 5.4%, while Constellation Software declined 1.4%.
On the upside, several companies advanced after topping profit expectations. Waste Connections inched up 0.1%, Mullen Group surged 4.7%, and Teck Resources climbed 3.9%.
Elsewhere, First Quantum Minerals eased 0.4% as Panama considers partnering with the company to reopen the Cobre Panama mine.
