The S&P/TSX Composite Index dropped 1.2% to close at 35,826 on Tuesday, pressured by rising global bond yields. Renewed hostilities in the Middle East pushed oil prices higher and led markets to reassess the outlook for further central bank rate hikes. The Bank of Canada is widely expected to keep its policy rate on hold on Wednesday, while Canada’s 10-year government bond yield climbed to its highest level in nearly two weeks.
Financials retreated, with TD Bank and BMO each slipping 0.9% and National Bank down 1.5%. Higher yields also weighed on gold prices, putting pressure on miners: Agnico Eagle tumbled 4.4%, Barrick and Wheaton Precious Metals each lost 3.6%, and Franco-Nevada fell 2.7%.
Technology shares extended their decline, mirroring weakness on Wall Street amid a surge in AI-related corporate debt issuance. Shopify slid 4.7%, Constellation Software lost 2.8%, and Celestica dropped 2.1%.
In contrast, energy stocks advanced on firmer crude prices. Canadian Natural Resources gained 3.7%, Suncor and Cenovus each rose 3.5%, and Imperial Oil added 3%.
