TSX Today: What to Watch for in Stocks on Thursday, June 4

The TSX pulled back from record highs on Wednesday as rising geopolitical tensions pushed investors into a more cautious mood, while investors are expected to watch energy prices and geopolitical developments closely today.

Key Points
  • The TSX fell 368 points on Wednesday due to Middle East tensions and rising energy prices, which sparked concerns about energy supply and inflation.
  • Lithium Americas and Aya Gold & Silver were among the worst performers, while GFL Environmental gained 3.3% after announcing progress on renewable natural gas projects in the U.S.
  • TSX investors will be watching developments in U.S.-Iran tensions today, while also keeping an eye on reactions to proposed U.S. tariffs on Canadian exports.

The Canadian stock market retreated from its record highs on Wednesday as fears of further escalation in the Middle East sent crude oil and natural gas prices higher, prompting investors to adopt a more cautious stance. A day after closing above the key 35,000 level for the first time, the S&P/TSX Composite Index gave up a large part of its recent gains, concluding the session at 34,802 with a decline of 368 points, or 1% from its previous close.

Despite intraday gains in consumer staples and financial stocks, steep declines in other key sectors, such as technology, healthcare, and mining, dragged the TSX benchmark lower. Investors largely shifted into a risk-off mode as rising geopolitical tensions fueled concerns about energy supplies, inflation pressures, and the broader economic outlook.

Fresh developments from the Middle East remained at the centre of market attention after Iran and the U.S. exchanged new strikes, further testing the fragile ceasefire between the two countries.

tsx today

Top TSX Composite movers and active stocks

Lithium Americas, Aya Gold & Silver, AbraSilver Resource, and Nexgen Energy were the worst-performing TSX stocks for the day, with each plunging by at least 8%.

In contrast, Advantage Energy, GFL Environmental (TSX: GFL), DPM Metals, and Athabasca Oil climbed by at least 3.1% each, making them the day’s top-performing TSX stocks.

Notably, GFL stock climbed by 3.3% to $48.24 per share after the company and OPAL Fuels announced progress on two new renewable natural gas (RNG) facilities in Alabama and Georgia. The jointly owned projects are expected to add about 15 million gasoline gallon equivalents of RNG supply capacity and fuel roughly 800 heavy-duty trucks.

GFL said the facilities will support its greenhouse gas reduction goals while generating stable, long-term returns. The projects will also convert landfill methane into low-carbon transportation fuel. Investors appeared to welcome GFL’s RNG portfolio expansion and its potential to drive future growth.

Based on their daily trade volume, Canadian Natural Resources, BlackBerry, BCE, Telus, and Enbridge were the five most active stocks on the Toronto Stock Exchange.

TSX today

Commodity prices were largely mixed in early trading on Thursday, pointing to a flat open for the resource-heavy main TSX index today.

While any signs of easing U.S.-Iran tensions could weigh on oil prices, renewed attacks in the Gulf or around the Strait of Hormuz may keep energy markets volatile.

In addition, trade-sensitive TSX stocks could also draw attention today after U.S. president Donald Trump proposed a new 10% tariff on Canadian exports tied to forced-labour enforcement concerns. However, most Canadian exports to the United States could remain unaffected, as the proposed tariff would apply only to goods that do not comply with the Canada-United States-Mexico Agreement rules.

On the corporate events side, the TSX-listed Saputo will announce its latest quarterly results after the market closing bell.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bce, BlackBerry, Canadian Natural Resources, and Enbridge. The Motley Fool recommends Aya Gold & Silver, Canadian Natural Resources, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

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