TSX Slides as Bond Rout and Oil Surge Hit Sentiment

The S&P/TSX Composite Index fell nearly 2% to trade below 34,000 on Friday as investors reacted to a global bond market selloff and stalled US-Iran talks. Oil prices rose amid the lack of progress toward a deal to end ship attacks and seizures around the Strait of Hormuz, reinforcing stagflation concerns and pressuring the broader market. Banking shares moved lower, with Royal Bank of Canada and TD Bank both shedding more than 1%. Gold prices also declined as inflation fears lifted expectations of higher interest rates and pushed US Treasury yields higher, weighing on miners. Agnico Eagle, Barrick, and Wheaton Precious Metals all dropped more than 4%. On the earnings front, NXT Energy (-2.3%) reported weaker first-quarter revenue and profit, while Questerre (-18.2%) slumped despite stronger adjusted funds flow supported by lower Brazil-related costs.

Futures tracking the S&P/TSX Composite Index fell on Friday as investors were rattled by a global bond market selloff after stalled US-Iran talks hurt risk sentiment. Oil prices rose amid the lack of progress toward a deal to end ship attacks and seizures around the Strait of Hormuz. Concerns over broader stagflation pressures and higher bond yields continued to weigh on banks and the broader market. Gold prices declined as inflation fears lifted expectations of higher interest rates and pushed US Treasury yields higher, pressuring mining stocks. On the earnings front, NXT Energy reported lower first-quarter revenue and profit due to a contract phase shift, while Questerre’s adjusted funds flow jumped on lower Brazil-related costs. This week, minutes from the Bank of Canada’s April meeting showed policymakers believed they could afford to remain patient on rates, while acknowledging conditions could change quickly.

The S&P/TSX Composite Index rose 0.7% to close at 34,267 on Thursday as investors assessed the highly anticipated summit between US President Donald Trump and Chinese President Xi Jinping. Trump described the talks as “extremely positive and constructive,” although neither leader provided details on discussions expected to cover trade, Taiwan, artificial intelligence, and the US-Iran conflict. Banks led gains, with Royal Bank of Canada rising 2.3% and BMO advancing 1.9%. On the earnings front, Canadian Tire fell 4.1% despite reporting first-quarter adjusted profit above expectations, while Keyera gained 3.9% despite posting a quarterly loss. Sherritt International plunged 24.1% after warning that its first-quarter financial filing could be delayed following management changes. On the data front, Canadian home sales rose modestly in April while wholesale trade increased 1.9% in March, above forecasts.