18.06.202620:44:26UTC+00TSX Falls After Hawkish Fed Outlook

Canada’s S&P/TSX Composite Index slipped 0.4% to close at 34,969 on Wednesday, as investors weighed a more hawkish outlook from the US Federal Reserve and the signing of an interim peace agreement between the United States and Iran. The Fed left its benchmark interest rate unchanged, but its projections were interpreted as more hawkish than anticipated, with roughly half of Federal Open Market Committee members expecting at least one additional rate hike this year. That stance heightened concerns about persistently higher borrowing costs.

Financials were mixed: Brookfield declined 0.6% and CIBC fell 0.8%, while RBC and TD Bank each advanced 0.7%. Mining stocks led the downside as gold prices softened, with Barrick off 2.3%, Agnico Eagle down 3.6%, and WPM losing 2.9%. The energy sector also weakened as oil prices retreated following the US–Iran deal, which aims to end the conflict and reopen the Strait of Hormuz. Canadian Natural dropped 3%, and Suncor shed 1.5%.