TSX Futures Slip on Hawkish Fed Signals

The S&P/TSX Composite Index rose 0.6% to close at 32,958 on Wednesday as global markets rallied amid signs of de-escalation in the Middle East. President Donald Trump and Secretary of State Marco Rubio reinforced expectations for a swift conclusion to the conflict with Iran which pulled crude futures down. Gold and precious metals mining stocks led the rise as Kinross Gold rose 4.6%, Wheaton Precious Metals added 4.1% while Barrick Gold and Agnico Eagle both climbed over 3%. Lower energy costs and a global retreat in the US dollar supported financial heavyweights as TD Bank and RBC gained 1.1% and 0.9% while National Bank of Canada jumped 2.4%. Conversely falling oil prices weighed on producers with Canadian Natural Resources sinking 4.7% and Suncor Energy declining 1.9% alongside a 1.5% drop for Imperial Oil. After logging a 4.55% decline in March the TSX started the second quarter on a positive note while investors await a national address from the White House.

The S&P/TSX Composite Index rose around 0.3% to cross the 32,900 mark on Wednesday as global markets rallied following continued signals of de-escalation in the Middle East. President Donald Trump and Secretary of State Marco Rubio reinforced hopes for a swift resolution to the conflict with Iran, suggesting direct engagement could soon restore regional stability. Oil prices dropped, which eased inflation concerns and supported financial heavyweights like RBC and TD Bank, both gaining nearly 1%. While falling energy costs weighed on producers such as Canadian Natural Resources (-2.9%) and Imperial Oil (-1.5%) , the broader market benefited from lower bond yields and a softer US dollar. Gold prices continued to climb, boosting mining stocks with Agnico Eagle, Barrick Gold, and Wheaton Precious adding around 2%. After logging a 4.6% decline in March, the TSX started Q2 on a positive note while extending its streak of seven consecutive quarterly gains through the end of March.

Futures tracking the S&P/TSX Composite Index were higher on Wednesday as global markets rallied after US President Trump signaled a possible swift resolution to the Middle East conflict. On Tuesday, Trump and Secretary of State Marco Rubio indicated the conflict with Iran may be nearing an end, hinting at direct engagement with Iranian leaders and a de-escalation of hostilities even without a formal agreement. Oil prices, which had rallied since the conflict began, fell sharply, easing fears of energy-driven stagflation. Lower bond yields reduced worries over credit activity and supported financial stocks, while lower oil prices weighed on energy producers. Meanwhile, gold extended its climb as the dollar softened following Trump's de-escalation signals, lifting mining stocks. Furthermore, the TSX logged a 4.6% decline in March, its steepest monthly drop since May 2023, though it ended the first quarter up 3.3%, extending its run of quarterly gains to seven.