FX.co ★ TSX Drops After Fed and BoC Rate Hold

The S&P/TSX Composite Index slipped 0.8% to close at 33,318 on Wednesday after both the Bank of Canada and the US Federal Reserve left interest rates unchanged. The BoC held its policy rate at 2.25%, as expected, maintaining a cautious, wait-and-see stance amid persistent US–Iran tensions that are fueling inflation concerns. The Fed kept its benchmark rate in the 3.5%–3.75% range, pointing to the surge in oil prices and increased economic uncertainty stemming from the Iran conflict. Financials weighed on the index, with Bank of Montreal down 2%, Royal Bank of Canada off 1.3%, and TD Bank slipping 0.8%. Energy stocks advanced on the back of rising oil prices, while weaker gold prices pressured the mining sector. Canadian Natural Resources rose 1.9%, whereas Agnico Eagle dropped 2.9%. Shopify edged 0.7% lower ahead of earnings releases from major US technology companies after the closing bell.