18.03.202620:03:08UTC+00TSX Tumbles Midweek

The S&P/TSX Composite Index tumbled 1.9% to close at 32,313 on Wednesday, as a hawkish hold by the Federal Reserve and a steep selloff in mining stocks overshadowed a steady interest rate decision from the Bank of Canada. The sharp pullback underscores a market contending with a 0.7% jump in U.S. producer prices, which strengthened the dollar and increased the opportunity cost of holding non-yielding assets.

While the Bank of Canada kept its overnight rate unchanged at 2.25%, the Federal Reserve signaled it expects to deliver only one rate cut in 2026, reflecting persistent, energy-driven inflation and the effective shutdown of the Strait of Hormuz. Resource-heavy names bore the brunt of the decline, with Agnico Eagle and Barrick Gold each losing more than 5.5% as bullion prices retreated.

Energy majors offered a partial offset, with Suncor and Canadian Natural Resources inching higher after strikes on Iranian energy infrastructure. Financials, however, remained a key drag on the index, led by a 1.5% drop in TD Bank as investors reassessed the implications of a more restrictive global rate outlook.