03.06.202620:37:07UTC+00Canadian Stocks Retreat from Record Highs

The S&P/TSX Composite Index fell 1% on Wednesday to close at 34,801, pulling back from the record high reached in the previous session as a flare-up in US–Iran tensions undermined optimism for a peace agreement. Sentiment deteriorated after Iranian forces launched attacks on Kuwait and Bahrain, while the United States conducted strikes near the Strait of Hormuz. The renewed geopolitical risk pushed oil prices higher, rekindling worries about energy-driven inflation and the prospect of prolonged elevated borrowing costs.

Financials were weaker, with BMO declining 1.5%. Brookfield dropped 3.4% after unveiling a joint venture with a Concert Properties affiliate centered on an industrial portfolio valued at roughly $1 billion. Mining stocks also dragged on the index as gold prices retreated: Agnico Eagle slipped 3.6%, Barrick Gold lost 2.5%, and Wheaton Precious Metals (WPM) fell 3.5%. Technology shares mirrored the downturn on Wall Street, with Shopify down 3% and Constellation Software sliding 4.7%.