TSX Tumbles Midweek
2026-03-18 20:03
By
Felipe Alarcon
1 min. read
The S&P/TSX Composite Index plunged 1.9% to close at 32,313 on Wednesday as a hawkish hold from the Federal Reserve and a massive retreat in the mining sector overshadowed a steady interest rate decision from the Bank of Canada.
This sharp decline reflects a market grappling with a 0.7% surge in US producer inflation that bolstered the dollar and heightened the opportunity cost for non-yielding assets.
While the Bank of Canada maintained its overnight rate at 2.25%, the Federal Reserve signaled only one rate reduction for 2026 amid persistent energy-driven inflation and the effective closure of the Strait of Hormuz.
Resource-heavy equities led the losses with Agnico Eagle and Barrick Gold falling over 5.5% following a retreat in bullion.
Energy giants provided a partial hedge as Suncor and Canadian Natural Resources edged higher following strikes on Iranian infrastructure.
Financials remained a major drag with TD Bank falling 1.5% as investors weigh a more restrictive global rate path.