(REVISES TSX VENTURE CLOSE; WAS DOWN, NOT UP)
Stock markets in Toronto faded from all-time highs on Wednesday, weighed most by industrial and energy plays, as investors awaited details of a U.S.-Iran peace agreement and the Federal Reserve's rate decision under new Chair Kevin Warsh.
The TSX Composite Index reversed 264.47 points to finish Wednesday at 35,125.11
The Canadian dollar eased 0.58 cents to 70.86 cents U.S.
Apparel maker Gildan Activewear gained $4.59, or 6.5%, to $74.98.
Among industrials, Mullen Group docked $1.12, or 5%, to $21.34, while Badger Infrastructure Solutions declined $4.31, or 4.8%, to $86.26.
Energy issues took their lumps, too, as CES Energy Solutions subtracted 47 cents, or 3%, to $15.32, while Baytex Energy forfeited 16 cents, or 2.7%, to $5.75.
Materials were also in the minus column, with AbraSilver down $1.26, or 7.9%, to $14.24, while Lundin Mining slid $2.52, or 6.1%, to $38.73.
In financials, Great-West Lifeco proved among the few gainers, advancing $2.78, or 3.2%, to $88.72, while EQB Financial moved higher $3.19, or 2.7%, to $122.61.
Federal Trade Minister Dominic LeBlanc said he had a constructive meeting with U.S. Trade Representative Jamieson Greer, with talks planned as USMCA review timelines extend beyond July 1 without immediate renegotiation.
Meanwhile, the U.S. and President Donald Trump have pivoted in their view of the war in Ukraine, taking what other G7 leaders thought was a more realistic position regarding the conflict, Prime Minister Mark Carney said on Wednesday.
ON BAYSTREET
The TSX Venture Exchange fell 18.82 points, or 1.9%, to 967.12.
All but one of the 12 TSX subgroups were lower, with industrials down 2.5%, energy, off 1.7%, and materials, retreating 1.3%.
Only financials gained, 0.4% at that.
ON WALLSTREET
Stocks fell on Wednesday, while Treasury yields surged, as investors grew uncertain over the path of monetary policy after several Federal Reserve officials indicated there could be a rate hike this year to tamp down on inflation.
The Dow Jones Industrials plummeted 506.51 points, or 1%, to close Wednesday at 51,493.16.
The S&P 500 index ditched 91.23 points, or 1.2%, to 7,420.12.
The NASDAQ withered 354.69 points, or 1.4%, to 26,021.66.
At the conclusion of the Fed’s two-day meeting, the first under new Chairman Kevin Warsh, the central bank left interest rates unchanged at a target range of 3.5% to 3.75%.
A number of Fed officials see rates increasing in 2026, according to the summary of economic projections. The fed funds rate’s median estimate for year-end now stands at 3.8%. That’s an increase from 3.4% in the prior projections from March, which suggests that the committee sees at least one rate hike as necessary in 2026.
Warsh revealed he abstained from submitting a projection, complicating the forecast.
The chairman also signaled changes to the Fed could soon be coming. He announced five task forces to tackle certain issues related to operations at the central bank and how they impact monetary policy decisions. Traders were unsure of what these Warsh changes would mean for the future direction of rates.
SpaceX traded down $9.98, or 5% to $191.82. The stock had been on fire since the rocket company’s initial public offering last week, which was priced at $135. In that short time, shares have risen around 40%, bolting the company’s valuation above that of Amazon’s.
Shares of Intel rose $4.05, or 3.5%, to $121.10 as part of a broader comeback among chip stocks. This comes on the heels of the company starting production of its most-advanced chip node known as 18A-P, a step that moves the company closer to securing a potential agreement to produce chips for Apple devices.
Alongside Intel, ASML advanced $63.94, or 3.5% to $1,867.83.
Prices for the 10-year Treasury were lower, boosting yields to 4.50% from Tuesday 4.43%. Treasury prices and yields move in opposite directions.
Oil prices recovered 11 cents to $76.16 U.S. a barrel.
Gold prices swooned $97.70 to $4,256.70 U.S. an ounce.
