Canada's main stock index opened lower on Thursday, despite optimism over the U.S.-Iran peace deal.
The TSX Composite Index slid 55.69 points to begin Thursday at 35,069.12
The Canadian dollar eased 0.09 cents to 70.82 cents U.S.
The Fed's stance rattled investors, with TSX pulling back from its all-time high on Wednesday, further weighed down by declines in resources and industrial stocks.
Meanwhile, oil prices extended losses on Thursday, with Brent crude trading near $77 a barrel, after Washington and Tehran signed an interim agreement to end the war, reopen the Strait of Hormuz and waive U.S. sanctions on Iranian oil.
Separately, Canada, Norway, and Sweden will announce a new Prioritized Ukraine Requirements List package to supply Ukraine with U.S. weapons, Sweden's Defence Minister Pal Jonson said in Brussels on Thursday.
On the economic calendar, Statistics Canada reported its Industrial Product Price Index rose 1.2% month over month in May and increased 13.6% year over year.
The Raw Materials Price Index gained 0.7% month over month in May and rose 33.4% year over year.
ON BAYSTREET
The TSX Venture Exchange lost 5.44 points to 961.68.
Seven of the 12 TSX subgroups were higher, led by industrials up 0.9%, consumer discretionary stocks ahead 0.7%, and real-estate better by 0.6%.
The five laggards were weighed most by energy, off 3%, information technology, down 1.7%, materials, sliding 0.6%.
ON WALLSTREET
U.S. stocks rose on Thursday, with traders looking to recover after the Federal Reserve indicated the possibility of a rate hike this year — sparking a selloff in equities during the previous session.
The Dow Jones Industrials regained 277.45 points, to open Thursday at 51,770.
The S&P 500 index hiked 72.45 points, or 1%, to 7,492.55.
The NASDAQ shot higher 309.15 points, or 1.2%, to 26,330.83.
Intel led chip stocks higher, rising 7% after President Donald Trump said the company will partner with Apple on designing chips in the U.S.
Fellow semiconductor names such as Nvidia and Micron Technology were also higher by more than 1% and around 6%, respectively.
Wall Street sold off Wednesday after the Federal Reserve’s first meeting with Kevin Warsh as chairman raised worries about monetary policy going forward.
Policymakers’ “dot plot” revealed that nine out of 18 Fed officials now see interest rates increasing in 2026.
Complicating the forecast was Warsh’s decision to abstain from submitting a rate forecast. However, the chairman repeatedly emphasized the goal of achieving “price stability” during the press conference, exhibiting a tone seen as rather hawkish.
Prices for the 10-year Treasury rallied, lowering yields to 4.43% from Wednesday 4.50%. Treasury prices and yields move in opposite
directions.
Oil prices sank $2.79 to $74.00 U.S. a barrel.
Gold prices dropped $113.00 to $4,268.40 U.S. an ounce.
Stocks Try to Recover from Fed-Led Selloff
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