TSX Drops on Oil Rally and BoC Hike Bets
The S&P/TSX Composite Index fell 1% to close at 35,973 on Thursday as rising oil prices fueled inflation concerns and reinforced expectations for higher-for-longer interest rates. Crude prices climbed amid escalating tensions in the Middle East. Markets are pricing in rate hikes from both the Bank of Canada and the US Federal Reserve this year, keeping credit-sensitive stocks under pressure amid concerns over energy-driven inflation and higher borrowing costs. Major banks declined, with Scotiabank losing 0.9%. Miners posted sharp losses as gold prices fell, with Agnico Eagle down 6.2%, Wheaton Precious Metals shedding 6.8%, Barrick losing 5.5% and Franco-Nevada retreating 5%. Tech stocks also weakened after US megacap earnings failed to impress, reigniting concerns over AI spending. Celestica tumbled 12% ahead of its results due Monday, while Shopify shed 3.5%. Elsewhere, Waste Connections jumped nearly 9.5% after beating profit and revenue estimates and raising its full-year outlook.
The S&P/TSX Composite Index fell 1% to close at 35,973 on Thursday as rising oil prices fueled inflation concerns and reinforced expectations for higher-for-longer interest rates. Crude prices climbed amid escalating tensions in the Middle East. Markets are pricing in rate hikes from both the Bank of Canada and the US Federal Reserve this year, keeping credit-sensitive stocks under pressure amid concerns over energy-driven inflation and higher borrowing costs. Major banks declined, with Scotiabank losing 0.9%.
Miners posted sharp losses as gold prices fell, with Agnico Eagle down 6.2%, Wheaton Precious Metals shedding 6.8%, Barrick losing 5.5% and Franco-Nevada retreating 5%. Tech stocks also weakened after US megacap earnings failed to impress, reigniting concerns over AI spending. Celestica tumbled 12% ahead of its results due Monday, while Shopify shed 3.5%. Elsewhere, Waste Connections jumped nearly 9.5% after beating profit and revenue estimates and raising its full-year outlook.