TSX Falls as Oil Rally Fuels BoC Rate Hike Bets

The S&P/TSX Composite Index fell more than 0.5% to hover near 35,500 on Friday as the oil rally continued to fuel inflation concerns, while technology stocks remained under pressure. Crude oil prices climbed amid escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran. Canadian bond yields moved higher, with markets pricing in a Bank of Canada rate hike at its next meeting amid energy-driven inflationary pressures. Major Canadian banks posted losses, with RBC, TD Bank, BMO, Scotiabank and CIBC each down about 1%. Meanwhile, technology stocks remained under pressure as the rotation away from AI-related shares continued. Celestica extended its losses, falling more than 3.5% after plunging 12% in the previous session, while Shopify shed nearly 1%. Celestica is scheduled to report its third-quarter 2026 results on Monday. Elsewhere, gold prices fluctuated and silver fell, weighing on mining stocks. On the week, the TSX shed near 2%.

Futures tracking the Canadian stock market moved lower on Friday as the oil rally continued to fuel inflation concerns, while technology stocks came under pressure amid a selloff on Wall Street. Crude oil prices climbed amid escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran. Canadian bond yields moved higher, with markets pricing in a Bank of Canada rate hike at its next meeting amid energy-driven inflationary pressures. Major Canadian banks listed in the US posted losses in overnight trading. Meanwhile, technology stocks remained under pressure as the rotation away from AI-related shares continued. In the previous session, Celestica plunged 12%, while Shopify also closed sharply lower. Celestica is scheduled to report its third-quarter 2026 results on Monday. Elsewhere, gold prices fluctuated and silver fell, weighing on mining stocks.

The S&P/TSX Composite Index fell 1% to close at 35,973 on Thursday as rising oil prices fueled inflation concerns and reinforced expectations for higher-for-longer interest rates. Crude prices climbed amid escalating tensions in the Middle East. Markets are pricing in rate hikes from both the Bank of Canada and the US Federal Reserve this year, keeping credit-sensitive stocks under pressure amid concerns over energy-driven inflation and higher borrowing costs. Major banks declined, with Scotiabank losing 0.9%. Miners posted sharp losses as gold prices fell, with Agnico Eagle down 6.2%, Wheaton Precious Metals shedding 6.8%, Barrick losing 5.5% and Franco-Nevada retreating 5%. Tech stocks also weakened after US megacap earnings failed to impress, reigniting concerns over AI spending. Celestica tumbled 12% ahead of its results due Monday, while Shopify shed 3.5%. Elsewhere, Waste Connections jumped nearly 9.5% after beating profit and revenue estimates and raising its full-year outlook.