The S&P/TSX Composite Index fell 0.7% to close at 33,584 on Tuesday, pressured by stalled negotiations between the United States and Iran. With the Strait of Hormuz effectively shut, concerns persist that an energy supply shock could ignite global inflation. While the Bank of Canada and the US Federal Reserve are widely expected to leave interest rates unchanged on Wednesday, investors fear that energy-driven stagflation could eventually force a more hawkish policy stance later in the year.
Performance across sectors was mixed. In financials, Brookfield slipped 1.2%, while Royal Bank of Canada advanced 1%. The mining sector recorded steep declines amid weaker gold prices, with Agnico Eagle down 4.2% and Wheaton Precious Metals (WPM) off 4.9%. By contrast, energy stocks benefited from higher crude prices: Canadian Natural Resources gained nearly 3.3%, and Suncor added 1.4%.
In technology, Celestica tumbled 14.5% despite reporting strong first-quarter 2026 results, as the broader tech space came under pressure following disappointing earnings from OpenAI.
