13.05.202620:43:24UTC+00TSX Closes Lower on Hawkish Fed Outlook

The S&P/TSX Composite Index fell 0.7% to close at 34,041 on Wednesday as investors weighed the outlook for prolonged restrictive monetary policy and persistently high energy prices. Hopes for a reopening of the Strait of Hormuz diminished after US-Iran peace talks stalled this week, while mounting stagflation worries and rising bond yields continued to pressure bank shares and the broader market. BMO declined 1.4% and Royal Bank of Canada slipped 1.2%.

At the same time, gold prices extended their losses after stronger-than-expected US producer price data reinforced expectations of tighter Federal Reserve policy, dragging down mining stocks. Agnico Eagle eased 0.6% and Barrick fell 2.1%. Elsewhere, Equinox Gold lost 2.1% after unveiling plans to acquire Orla Mining (up 0.8%) in a transaction that would create a North America–focused gold producer valued at roughly $18.5 billion. Boyd Group tumbled 12% after its first-quarter sales came in below forecasts.