Canada’s main stock index declined on Wednesday as rising bond yields prompted investors to pull back from risk. Gold and silver prices also weakened, pressured by a stronger US dollar and higher yields, adding to the negative sentiment across the resource-heavy Canadian market.
US equities also traded lower, one day after the S&P 500 notched a new record high, as rising oil prices and the US 10-year yield hitting a fresh cycle high above 5.35% weighed on sentiment. While the broader market has struggled, a handful of AI-focused technology stocks continue to propel major indices higher. This growing imbalance has emerged as a key market risk, as higher bond yields tighten financial conditions even while enthusiasm surrounding artificial intelligence supports the largest capitalization-weighted benchmarks. Meanwhile, the Trump administration is reportedly exploring a suspension of the federal gasoline tax as part of broader efforts to curb fuel inflation. The proposal comes after rules governing dyed diesel were eased and highlights how the recent energy shock in the Gulf region is increasingly influencing domestic US politics, with elevated gasoline prices threatening to become a significant issue ahead of the upcoming midterm elections.
| TSX | 35,041.86 | -607.65 |  |
| TSXV | 877.17 | -12.95 | |
| CSE | 151.17 | -1.01 | |
| DJIA | 51,179.87 | -341.41 | |
| NASDAQ | 27,538.69 | -61.20 | |
| S&P 500 | 7,801.77 | -17.16 | |
The Canadian dollar traded for 70.12 cents US compared to 70.36 cents US on Tuesday.
US crude futures traded US$1.26 lower at US$88.18 a barrel, and the Brent contract lost $0.53 to US$100.00 a barrel.
The price of gold was down US$50.10 to US$4,111.22.
In world markets, the Nikkei was down 648.27 points to ¥70,035.71, the Hang Seng was down 150.06 points to HK$24,130.50, the FTSE was down 83.19 points to ₤10,458.50, and the DAX was down 344.83 points to €25,104.36.