FX.co ★ TSX Falls as Oil Rally Fuels BoC Rate Hike Bets

The S&P/TSX Composite Index fell more than 0.5% on Friday, trading near 35,500, as a continued rally in oil prices intensified inflation concerns and kept pressure on technology shares. Crude prices advanced amid escalating Houthi attacks on Saudi targets and reports of potential renewed US strikes against Iran. Canadian government bond yields rose, with markets increasingly pricing in a Bank of Canada rate hike at its next meeting in response to energy-driven inflationary pressures.

Financials weakened, with the major Canadian banks — RBC, TD Bank, BMO, Scotiabank and CIBC — each losing around 1%. Technology stocks also remained under pressure as investors continued to rotate out of AI-related names. Celestica extended its slide, dropping more than 3.5% after a 12% plunge in the previous session, while Shopify declined nearly 1%. Celestica is slated to report its third-quarter 2026 results on Monday. In the commodities space, gold prices were volatile and silver declined, weighing on mining stocks.