The S&P/TSX Composite Index fell nearly 1% on Wednesday, slipping below 33,500 after both the Bank of Canada and the US Federal Reserve left interest rates unchanged. The Bank of Canada kept its policy rate at 2.25%, as expected, opting for a wait-and-see stance amid ongoing US-Iran tensions that continue to fuel inflation concerns. The Federal Reserve, meanwhile, held its benchmark rate in a range of 3.5% to 3.75%, pointing to surging oil prices and heightened economic uncertainty stemming from the conflict in Iran.
Financials came under pressure, with major banks such as BMO and Royal Bank of Canada each losing around 1%. In contrast, the recent spike in oil prices has supported energy shares, while a pullback in gold prices weighed on mining stocks. Canadian Natural Resources rose nearly 2%, whereas Agnico Eagle Mines declined close to 3%.
In corporate news, several major US technology firms—including Microsoft, Alphabet, Meta, and Amazon—are scheduled to report quarterly results after the closing bell on Wall Street, which could influence sentiment toward Canadian tech names. Shopify shares slipped almost 1%.
