TSX Futures Edge Lower on Commodity Weakness

The S&P/TSX Composite Index lost more than 0.5% to trade below 35,000 on Wednesday amid persistently high borrowing costs and weakness in commodity-linked sectors. Gold prices declined as the dollar strengthened on rising bets for further US rate hikes, pressuring mining stocks. Agnico Eagle and WPM shed nearly 3%, while Barrick fell more than 4%. Oil prices also extended this week’s losses on signs that more tankers are set to leave the Strait of Hormuz, easing concerns over energy-driven inflation but weighing on energy shares. Canadian Natural and Imperial Oil lost more than 2%, while Suncor retreated 2.5% and Cenovus shed about 3%. Major banks traded near the flatline, with RBC, BMO, and TD Bank edging lower. In contrast, Canadian tech stocks rebounded from the prior session’s global selloff, with Shopify gaining nearly 3%, while Celestica and Constellation Software rose around 1%.

Fututres tracking the S&P/TSX Composite Index edged lower on Wednesday on persistently high borrowing costs and pressure from energy producers. Gold prices declined as the dollar strengthened on rising bets for further US rate hikes, weighing on mining stocks. Oil prices also fell, extending this week’s losses on signs that more tankers are set to leave the Strait of Hormuz, easing concerns over energy-driven inflation but pressuring energy shares. Adding to caution, a broader reassessment of AI valuations on Wall Street wiped roughly $1.3 trillion in market value in the previous session, weighing on global risk sentiment.

The S&P/TSX Composite Index fell 0.2% to close at 34,927 on Tuesday, tracking global equities amid a broad selloff in technology stocks and persistent concerns over elevated interest rates. Worries that speculative AI spending by hyperscalers may be running ahead of fundamentals weighed on North American tech shares and hurt overall risk appetite. Celestica plunged 6.2%, leading losses in the tech sector. Gold prices also declined, extending pressure on mining stocks following the hawkish projections from the US Federal Reserve last week. Agnico Eagle shed 3.5%, Barrick lost 4.7%, and WPM dropped 4.1%. Meanwhile, oil prices fell for a second straight session as supply concerns eased amid progress in restoring shipments through the Strait of Hormuz, reducing fears of energy-driven inflation but weighing on energy shares.