Canada Stocks: TSX hits nearly seven-week low as Fed raises interest rates

Athabasca Oil

16/09/2026 21:30

Updates at market close
By Fergal Smith
Sept 16 (Reuters) - Canada's main stock index fell on Wednesday to a nearly seven-week low as oil prices dropped and the Federal Reserve hiked interest rates.
The S&P/TSX Composite Index .GSPTSE ended down 90.8 points, or 0.3%, at 35,491.27, its lowest closing level since July 31.
Wall Street also lost ground after the Fed raised its key interest rate for the first time in over three years to fight stubbornly high inflation stemming from soaring crude oil prices.
"Today’s decision was largely anticipated following last week’s hotter-than-expected CPI report and the recent rise in oil prices," Thomas Feltmate, a senior economist at TD Economics, said in a note.
"Holding rates steady risked undermining the Fed’s commitment to returning price stability, potentially pushing longer-term Treasury yields even higher," Feltmate said.
Oil gave back some of its recent gains after reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns over Middle East supply disruptions. U.S. crude oil futures CLc1 settled 3.2% lower at $102.43 a barrel.
The energy sector .SPTTEN fell 3.4%, with shares of Athabasca Oil ATH.TO down 7.4%.
The materials group, which includes metal mining shares, ended 0.6% lower as a stronger U.S. dollar weighed on gold XAU=.
Declines for railroad stocks contributed to a 0.7% drop for industrials .GSPTTIN.
Six of the 10 major sectors notched gains, led by a 1.9% advance for utilities as yields on long-dated bonds eased.
Dollarama DOL.TO was a standout. Shares of the value retailer gained 5.5% after the company raised its annual comparable sales growth forecast.
European Commission President Ursula von der Leyen said she wanted to open the door to Canada becoming the EU's first associate member in a push to forge new links among allies in "an openly hostile world".

 (Reporting by Fergal Smith in Toronto and Darshan Kumar in Bengaluru; Editing by Shreya Biswas and Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))