Canadian equities retreated on Friday after oil prices surged to a multi-month high following heightened geopolitical tensions in the Middle East. The jump in crude prices added to concerns that inflationary pressures may persist, supporting expectations for higher interest rates both in Canada and the United States. Traders are currently factoring in a 25-basis-point rate increase from the Bank of Canada next week and nearly a full percentage point of additional tightening over the next 12 months.
US markets also dove into negative territory, led by declines in technology stocks. Investor sentiment weakened amid concerns that the recent artificial intelligence-driven rally could be losing steam, at least in the short term.
| TSX | 35,788.18 | -185.27 |  |
| TSXV | 820.95 | -1.01 | |
| CSE | 136.50 | -0.30 | |
| DJIA | 52,215.16 | -652.82 | |
| NASDAQ | 25,955.34 | -53.52 | |
| S&P 500 | 7,623.68 | -39.75 | |
The Canadian dollar traded for 71.44 cents US compared to 71.35 cents US on Thursday.
US crude futures traded US$3.50 higher at US$103.00 a barrel, and the Brent contract rose US$3.23 to US$116.40 a barrel.
The price of gold was down US$46.58 to US$3,998.14.
In world markets, the Nikkei was down 214.68 points to ¥62,693.16, the Hang Seng was up 158.69 points to HK$23,093.37, the FTSE was down 34.67 points to ₤10,690.36, and the DAX was down 219.44 points to €25,152.31.