The S&P/TSX Composite Index slipped below 34,500 on Wednesday, mirroring a broader risk-off mood as tensions in the Middle East intensified. The United States launched strikes on targets in Iran in response to an attack on a helicopter near the Strait of Hormuz, and Iran retaliated with strikes on US bases in Kuwait and Bahrain.
Domestically, the Bank of Canada kept its policy rate unchanged, in line with expectations, citing mixed signals from the Canadian economy. Nonetheless, markets are still pricing in a 25 bps rate increase by year-end.
Financials were broadly weaker, with Brookfield shedding nearly 1%. Technology stocks also remained under pressure as enthusiasm for AI cooled, dragging Shopify almost 2% lower. Mining names declined alongside softer gold prices: Agnico Eagle and Wheaton Precious Metals each fell around 2%, while Barrick Gold lost about 1.5%.
By contrast, energy stocks outperformed, supported by rising crude prices. Canadian Natural and Suncor each gained roughly 1%, and Cenovus advanced more than 1.5%.
