Canadian stocks retreated from their all-time high on Wednesday as renewed fighting between the United States and Iran rattled investors and drove crude oil prices higher. Sentiment weakened further after the U.S. Federal Reserve kept its benchmark interest rate unchanged at 3.5% to 3.75% and reiterated that inflation remains above its 2% target. As a result, the S&P/TSX Composite Index plunged by 416 points, or 1.2%, to settle at 35,334 — marking its worst single-day percentage decline in over seven weeks and erasing all of its gains from earlier in the week.
Even as a sharp recovery in crude oil prices lifted Canadian energy stocks, the gains were not enough to offset broad-based weakness on the Toronto Stock Exchange. Sectors like financials, real estate, and utilities led the decline as investors reacted to the Federal Reserve’s hawkish tone and growing geopolitical uncertainty.
In its latest statement, the Fed acknowledged that inflation remains above its target range despite solid economic growth and a resilient labour market. Notably, three Federal Open Market Committee (FOMC) members voted in favour of a quarter-point rate hike, highlighting growing concerns about persistent price pressures.
Top TSX Composite movers and active stocks
Centerra Gold (TSX:CG) jumped 5.5% to $23.95 per share, making it the day’s top-performing TSX stock. This rally in CG stock came after the miner reported strong second-quarter 2026 results, raised its full-year gold production guidance, and expanded its 2026 share buyback program to $200 million.
Centerra’s quarterly revenue surged 54% year over year in the June quarter, while its adjusted net earnings climbed 50% to $79.3 million. The company also highlighted stronger-than-expected production at its Öksüt mine, prompting a 9% increase in its gold production outlook for the site. On a year-to-date basis, CG stock is now up 21%.
Strathcona Resources, Canadian Natural Resources, and Cenovus Energy were also among the top gainers for the day, with each climbing by at least 4.5%.
In contrast, shares of Allied Gold (TSX:AAUC) crashed by nearly 19% following the termination of its previously announced arrangement agreement with Zijin Gold, despite securing a US$295 million strategic investment from the company at a premium share price.
Allied also released preliminary second-quarter operating results showing gold production rose 7% year over year, with its Kurmuk Mine still on track to begin operations in August. However, the collapse of the proposed transaction with Zijin Gold disappointed investors, overshadowing the company’s operational progress and growth updates.
Aecon Group, Badger Infrastructure Solutions, and Intact Financial also slipped by at least 6.6% each, making them among the session’s worst-performing TSX stocks.
Based on their daily trade volume, Telus, Canadian Natural Resources, Allied Gold, Manulife Financial, and Enbridge were the five most active stocks on the exchange.
TSX today
Crude oil prices experienced heightened volatility in early trading on Thursday, while precious metals prices were largely weak. These mixed commodity trends could lead to a mixed start for the resource-heavy TSX today.
Canadian investors will also watch developments in the U.S.-Iran conflict after Washington launched fresh strikes on Iranian military targets overnight. Although crude oil prices gave back some of Wednesday’s gains, concerns over supply disruptions through the Strait of Hormuz remained, with any further escalation likely to keep energy markets and TSX resource stocks volatile.
With no major domestic economic releases due, investors will keep an eye on the latest U.S. quarterly gross domestic product (GDP) and monthly personal consumption expenditure (PCE) data this morning.
On the corporate events front, several TSX-listed companies, including Aecon, TMX, Fairfax Financial, Power Corporation of Canada, Badger Infrastructure, Definity Financial, Pembina Pipeline, Lightspeed, Gildan Activewear, Brookfield Infrastructure, Bombardier, Loblaw, TC Energy, AltaGas, and Colliers International, will release their latest quarterly earnings reports today.