Stock Market Impact: The S&P/TSX 60 index fell 8 points (‑0.4%) and the S&P/TSX composite slipped 203 points (‑0.6%) amid heightened Middle East tensions; U.S. Dow, S&P 500 and Nasdaq also declined by 0.8%, 0.7% and 1% respectively.
Listed Companies and Sectors: Financial and energy stocks provided some support in Canada; semiconductor sector rallied with the PHLX Semiconductor Index up >90% since March and Marvell Technology shares jumping after Nvidia CEO Jensen Huang’s comment; Broadcom earnings are slated after market close.
Investment Flows: Brent crude futures rose to near $100/barrel, prompting concerns of inflation‑driven capital shifts; the U.S. dollar strengthened, potentially attracting foreign investors to dollar‑denominated assets.
Interest Rates, Inflation, and Liquidity: Rising oil prices and gold’s decline heightened inflation worries, leading markets to anticipate the Federal Reserve holding rates at its June meeting but pricing in a possible later hike.
Fiscal or Monetary Policy: No new fiscal measures reported; the focus remains on monetary policy expectations and the impact of geopolitical risk on commodity markets.
