Canadian Market Retreats From Record High; Energy, Tech Stocks Lose Ground

(RTTNews) - The Canadian market is down firmly in negative territory on Wednesday, weighed down by concerns about tensions in the Middle East, and largely contrasting reports about peace talks between the U.S. and Iran.

Iran launched ballistic missiles in the Gulf region and U.S. retaliated by striking Qeshm Island, which directly blocks the entrance to the Strait of Hormuz, is also the base of the IRGC's network of underground facilities and defensive positions across the island.

The benchmark S&P/TSX Composite Index, which dropped to 34,911.24, is down 189.80 points or 0.54% at 34,979.66 nearly half an hour before noon.

Materials and technology stocks are among the notable losers. Energy, consumer staples and consumer discretionary stocks are notably higher. Several stocks from the utilities section are also up with strong gains.

NexGen Energy is down 7.4%. Cameco, Ballard Power Systems, Equinox Gold, First Majestic Silver, Eldorado Gold, Enghouse Systems, Ivanhoe Mines, Kinaxis and Descartes Systems Group are down 4%-5%.

Teck Resources, OceanaGold, Osisko Gold Royalties, Onex Corporation, Lundin Mining, Brookfield, Novagold Resources, CGI Inc., Pan American Silver Corp., Hudbay Minerals and Ero Copper are among the several other notable losers.

Advantage Oil & Gas, Western Forest Products, Interfor, BlackBerry, Kelt Exploration, TransAlta, Brookfield Renewable Partners, Vermilion Energy, Mattr Corp., Canfor, Canadian Energy Services, Precision Drilling, Cenovus Energy and Imperial Oil are up 2%-6%.

In economic news, the S&P Global Canada Composite PMI increased to 50.8 in May from 49.9 in April, pointing to the strongest growth in private sector activity since November 2024.

The Manufacturing PMI score for May came in at 52.9, down from 53.3 in April, while the Services PMI reading for May was 50.6, up from 49.2 a month earlier.

Data from Statistics Canada showed Canadian business labor productivity fell 0.5% in the first quarter of 2026, following a 0.3% decline in the previous quarter and missing expectations for a 0.7% increase.