18.06.202614:21:58UTC+00TSX Edges Lower Amid Hawkish Fed Outlook

Canada’s S&P/TSX Composite Index inched lower on Wednesday, hovering near the 35,000 mark as investors digested a more hawkish-than-expected outlook from the US Federal Reserve and the signing of an interim peace agreement between the United States and Iran.

The Fed left interest rates unchanged, but its updated projections were interpreted as more hawkish, with roughly half of FOMC policymakers anticipating at least one additional rate hike this year. That stance heightened concerns about the prospect of higher borrowing costs.

In equities, financials were mixed: TD Bank gained nearly 1%, while Brookfield slipped. Mining names also traded unevenly as gold prices softened, with Barrick advancing close to 1% even as Agnico Eagle and Wheaton Precious Metals (WPM) moved lower.

The energy sector was a notable drag on the index as crude prices retreated following the US-Iran agreement, which is aimed at ending hostilities and reopening the Strait of Hormuz. Canadian Natural Resources and Suncor each dropped more than 3%, and Imperial Oil declined nearly 4%.

Technology stocks weakened as well, mirroring losses in the US software space. Shopify fell 0.9%, while Constellation Software slid more than 2%.