The S&P/TSX Composite Index declined more than 0.5% to trade near 35,500 on Wednesday, retreating from the record close set in the previous session as investors digested the Federal Reserve’s latest policy decision. As expected, the Fed left interest rates unchanged, though three FOMC members advocated for a hike, tempering hopes for a more dovish stance.
At the same time, oil prices extended their gains as tensions in the Middle East intensified following joint US-Saudi strikes in Iraq, stoking fresh inflation concerns. Rising bond yields added further pressure, weighing on financials and the broader market. The major Canadian banks – RBC, TD Bank, BMO, CIBC, and Scotiabank – each slipped around 2%.
In contrast, mining shares advanced in tandem with firmer gold prices. Agnico Eagle and Wheaton Precious Metals (WPM) rose about 1%, while Franco-Nevada added 2%. Energy stocks also climbed on stronger crude, with Canadian Natural Resources and Cenovus Energy gaining nearly 4% apiece. Cenovus additionally reported stronger second-quarter revenue and profit, providing an extra boost to its shares.
