TSX Falls on Oil Rally and Interest Rate Hike Bets
The S&P/TSX Composite Index fell nearly 1% to around 36,000 on Thursday as rising oil prices fueled inflation concerns and reinforced expectations for higher-for-longer interest rates. Crude prices climbed amid escalation in the Middle East conflict. Markets are pricing in rate hikes from both the BoC and the US Fed this year, keeping credit-sensitive stocks under pressure amid concerns over energy-driven inflation and higher borrowing costs. Banks fell, with BMO, Scotiabank, CIBC each losing about 1%. Miners posted sharp losses as gold prices fell, with Agnico Eagle, WPM and Barrick each dropping around 4%. Tech stocks also weakened after US megacap earnings failed to impress, reigniting concerns over AI spending. Celestica tumbled more than 7% ahead of its results due Monday, while Shopify shed over 1.5% ahead of its earnings release tomorrow. Elsewhere, Waste Connections jumped nearly 6% after beating profit and revenue estimates and raising its full-year outlook.
The S&P/TSX Composite Index fell nearly 1% to around 36,000 on Thursday as rising oil prices fueled inflation concerns and reinforced expectations for higher-for-longer interest rates. Crude prices climbed amid escalation in the Middle East conflict. Markets are pricing in rate hikes from both the BoC and the US Fed this year, keeping credit-sensitive stocks under pressure amid concerns over energy-driven inflation and higher borrowing costs. Banks fell, with BMO, Scotiabank, CIBC each losing about 1%.
Miners posted sharp losses as gold prices fell, with Agnico Eagle, WPM and Barrick each dropping around 4%. Tech stocks also weakened after US megacap earnings failed to impress, reigniting concerns over AI spending. Celestica tumbled more than 7% ahead of its results due Monday, while Shopify shed over 1.5% ahead of its earnings release tomorrow. Elsewhere, Waste Connections jumped nearly 6% after beating profit and revenue estimates and raising its full-year outlook.