The S&P/TSX Composite Index closed lower on Wednesday as weakness in technology, industrial and financial stocks outweighed gains in energy, while investors weighed escalating Canada-US trade tensions and a surge in crude oil prices.
The index closed down 216.49 points, or 0.6%, at 35,906.56 with most sectors in the red. Information Technology led decliners, down 2.0%, followed by the industrial and financial sectors that closed down 1.2% and 1.1%, respectively. Energy shares climbed 1.0%.
The Battery Metals Index, which includes companies listed both on the TSX and TSX Venture Exchange, jumped 3.6%.
In commodities, West Texas Intermediate (WTI) and Brent crude surged as escalating attacks between the US and Iran on oil tankers near the Strait of Hormuz heightened concerns about further disruptions to Middle East oil supplies.
October WTI crude oil contract settled up $3.02, or 3.3%, at $96.05 per barrel, while November Brent oil was last seen up $3.42, or 3.5%, at $101.34 per barrel.
Meanwhile, December Comex gold futures jumped 0.1%, or $4.00, to $4,443.00 per ounce at last look.
In currencies, the US dollar edged up 0.2% against the Canadian dollar to CA$1.3809 at last look.
Canadian wheat stocks surged 57% year over year to 6.6 million tonnes at the end of the 2025-2026 crop year, fueled by record production, according to the Ottawa-based statistical agency on Wednesday.
Dry pea stocks soared 142% to 1.2 million tonnes by July 31, while lentil stocks more than doubled to 1.3 million tonnes, Statistics Canada wrote in a statement.
On the trade front, US President Donald Trump's Canada import ban escalated trade tensions and cast fresh doubt on the future of the United States-Mexico-Canada Agreement, despite it covering just a tiny fraction of Canadian exports, according to Capital Economics in a Wednesday note.
Trump's ban, announced on Tuesday, covers only 0.25% of Canada's US-bound exports, calculated Capital Economics. Trump banned roughly $1 billion worth of Canadian products, including alcohol and cheese, effective Sept. 29.
In economics news, gasoline stations led Canada's automotive retail sector in the first half of 2026, with sales jumping 13.3% year over year amid higher fuel prices tied to the US-Iran war, according to DesRosiers Automotive Consultants in a note.
New-vehicle dealer sales rose 0.8% over the period, while remaining at record levels from a dollar value perspective. Accessories and tire store sales increased 1.3% and used-vehicle dealer sales climbed 2.4%.