The S&P/TSX Composite Index dropped 2.3% to close at 34,413 on Friday, as stronger-than-expected employment data in both Canada and the United States pushed bond yields higher and reinforced expectations that the Bank of Canada and the Federal Reserve will keep interest rates elevated for longer. Canadian employment rose by 88,000 in May, far surpassing forecasts, while U.S. payroll growth also beat expectations. At the same time, waning hopes for a near-term resolution to the Middle East conflict and renewed concerns around the reopening of the Strait of Hormuz added to inflation worries. Gold prices sank to their lowest level of 2026, triggering a sharp selloff in mining stocks: Agnico Eagle lost 7.2%, Barrick declined 7.6%, and WPM dropped 9.3%. Technology shares also came under pressure, mirroring a steep decline in U.S. chipmakers after Broadcom reported AI chip demand that fell short of lofty market expectations. Shopify slid 5.4%, while Celestica tumbled 12.3%.