TSX Drops on Hawkish BoC Expectations

2026-06-05 13:56 By Isabela Couto 1 min. read

The S&P/TSX Composite Index fell 1% to trade below 35,000 on Friday as investors assessed stronger-than-expected employment data from Canada and the US.

Employment in Canada rose by 88,000 in May, far exceeding forecasts, while US payroll growth also surprised to the upside.

The data pushed bond yields higher and reinforced expectations that the Bank of Canada and the Federal Reserve may keep interest rates elevated for longer, pressuring financial stocks and the broader index.

Major banks traded lower, with BMO and Scotiabank both down nearly 1%.

Gold prices fell, weighing on mining stocks, as Agnico Eagle and WPM shed nearly 3%, while Barrick lost more than 3.5%.

Shopify also declined about 1% amid an AI-driven tech selloff following disappointing results from Broadcom.

Meanwhile, uncertainty surrounding Middle East peace efforts continued to weigh on risk sentiment and duel inflationary pressures.



News Stream
TSX Drops on Hawkish BoC Expectations
The S&P/TSX Composite Index fell 1% to trade below 35,000 on Friday as investors assessed stronger-than-expected employment data from Canada and the US. Employment in Canada rose by 88,000 in May, far exceeding forecasts, while US payroll growth also surprised to the upside. The data pushed bond yields higher and reinforced expectations that the Bank of Canada and the Federal Reserve may keep interest rates elevated for longer, pressuring financial stocks and the broader index. Major banks traded lower, with BMO and Scotiabank both down nearly 1%. Gold prices fell, weighing on mining stocks, as Agnico Eagle and WPM shed nearly 3%, while Barrick lost more than 3.5%. Shopify also declined about 1% amid an AI-driven tech selloff following disappointing results from Broadcom. Meanwhile, uncertainty surrounding Middle East peace efforts continued to weigh on risk sentiment and duel inflationary pressures.
2026-06-05
TSX Futures Fall on BoC Rate Outlook
Futures tracking the S&P/TSX Composite Index edged lower on Friday as investors assessed stronger-than-expected employment data and ongoing uncertainty surrounding peace efforts in the Middle East. Employment in Canada rose by 88,000 in May, the largest increase since December 2024 and well above forecasts for a gain of 10,000. The robust labor market enforced expectations that the Bank of Canada may maintain a hawkish stance, pressuring financial stocks and the broader index. Meanwhile, Iran-backed Hezbollah rejected a new Lebanon ceasefire proposal, while Israel said it would not withdraw its troops, undermining US diplomatic efforts to halt the conflict and advance negotiations with Iran. Oil prices remained above $90 per barrel and bond yields moved higher, reviving concerns about inflation and borrowing costs. Gold prices fell, weighing on mining stocks.
2026-06-05
Canadian Stocks Hit Fresh Record High
Canada's S&P/TSX Composite Index rose 1.2% to a record closing high of 35,217 on Thursday, supported by improving global risk sentiment following reports of a conditional ceasefire between Israel and Lebanon, which fueled hopes that a broader agreement involving Iran could be reached. Healthcare, industrial, and financial stocks led the advance, while battery metals and telecommunications shares underperformed. Among the top gainers were Royal Bank of Canada (+1.9%), Toronto-Dominion Bank (+1.2%), Agnico Eagle Mines (+2.9%), and Barrick Mining Corporation (+2.1%). In contrast, TransAlta Corporation and Transcontinental were the session's weakest performers, falling 10.4% and 9.8%, respectively.
2026-06-04