Canadian stocks fell sharply on Wednesday after investors reacted to renewed escalation in the U.S.-Iran conflict and the latest Federal Reserve meeting minutes, which pointed to lingering inflation risks. The S&P/TSX Composite Index plunged by 337 points, or 1%, to settle at 34,936, marking its first closing below the key 35,000 level in four sessions and registering the benchmark’s steepest percentage decline in more than a month.
Higher crude oil prices lifted energy stocks, while defensive sectors such as consumer staples and utilities also posted gains as investors adopted a more cautious stance. However, sharp declines in most other key sectors, including mining, financials, and technology, more than offset those gains, dragging the TSX index lower.
The market selloff reflected mounting concerns that the escalating conflict in the Middle East could disrupt global energy supplies and keep inflationary pressures elevated. Those fears were highlighted by the Fed’s June meeting minutes, which showed policymakers remained concerned about persistent inflation and were prepared to keep interest rates higher for longer if price pressures failed to ease.
Top TSX Composite movers and active stocks
Falling metals prices drove mining stocks, such as Aris Mining, Eldorado Gold, Seabridge Gold, and G Mining Ventures, down by more than 6% each, making them the worst-performing TSX stocks for the day.
Air Canada (TSX: AC) also fell over 2% after the airline announced that Anko Van der Werff will become its next president and chief executive officer by the end of January 2027. Although the appointment brings in an aviation executive with more than 25 years of international experience to Air Canada, investors appeared to react cautiously to the leadership transition.
In contrast, Methanex, Enerflex, Headwater Exploration, and Cenovus Energy were the day’s top-performing TSX stocks, as they climbed by at least 5.4% each.
Despite the sector-wide weakness, shares of Ivanhoe Mines (TSX: IVN) inched up by 1.1% after the Vancouver-based miner reported second-quarter production results and project updates. In the latest quarter, the firm’s Kamoa-Kakula complex produced 64,328 tons of copper in the quarter, while its Kipushi mine delivered a record 70,177 tonnes of zinc in concentrate, up 8% from the previous quarter.
Ivanhoe also maintained its 2026 copper production guidance of 290,000 to 330,000 tons and said copper output should increase in the second half of the year as mining rates improve. Investors appeared encouraged by the stronger second-half outlook and record zinc production, which helped IVN stock edge higher despite pressure across the broader metals sector.
Based on their daily trade volume, Canadian Natural Resources, TD Bank, InterRent REIT, Telus, and Whitecap Resources were the five most active stocks on the Toronto Stock Exchange.
TSX today
Commodity prices across the board remained highly volatile in early trading on Thursday, pointing to a mixed open for the resource-heavy main TSX index today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the weekly jobless claims data from the U.S. this morning.
In addition, any further developments surrounding the U.S.-Iran conflict will likely remain in focus. Market participants will also assess the potential impact on shipping through the Strait of Hormuz, as any disruption could influence energy prices and trading in TSX resource stocks.
On the corporate events side, the TSX-listed Aritzia and Richelieu Hardware will release their latest quarterly earnings reports today, which could keep their stocks in focus.
Market movers on the TSX today
