Stock Market Plunges as Anxiety Over Potential US Involvement in Middle East Conflict Arises
Let's Break Down the Latest Happenings in the Canadian Stock Market
Y'all, the Canadian stock market saw some ups and downs on Thursday! Investors were playing it cool, considering the possibility of Uncle Sam getting tangled up in the Middle East mess. The Juneteenth Holiday in the US might've also kept a few traders on the bench.
The main index, the S&P/TSX Composite Index, started off strong but quickly dipped, then rallying again throughout the day, ending at 26,506.00—a 0.20% drop of 53.85 points.
Small businesses in Canada are feeling a tad more optimistic as per the Canadian Federation of Independent Business Barometer. Long-term expectations among 'em jumped 7.3 points to 47.3 in June, suggesting traders are all pumped up.
The US Federal Reserve kept interest rates steady (4.25% to 4.50%) for the fourth straight meeting on Wednesday, but they're planning two cuts later this year. Chair Jerome Powell said we can expect inflation to rise over the summer.
The Israel-Iran conflict, kicking off on June 12, is still going strong—day 7, to be precise. Israel's been bombing Iranian nuclear targets, while Iran's missiles have struck hospitals in Israel. Trump's all "I might do it or I might not," about involving the US, while Iran's threatening "serious, irreparable consequences" if US territory gets hit. The White House said Trump'll make a call on the US's participation in the next two weeks.
Now, folks are freaking about some major financial and commodity market disruptions if this thing drags on. The Consumer Discretionary, Materials, and Healthcare sectors took hits, while Energy, Consumer Staples, and Communication Services sectors saw some gains. Check out Dollarama, Capstone Mining, and Bausch Health Companies for the noteworthy losers. Paramount Resources, Empire Company, and Rogers Communications were the prominent gainers.
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Sources:
- [1] Neate, S. (2025, June 19). Canada stocks lower as investors weigh US-Iran tensions. [online] MarketWatch. Available at: https://www.marketwatch.com/story/canada-stocks-lower-as-investors-weigh-us-iran-tensions-2025-06-19
- [2] Markets Media (2025). Your Website. [online] Available at: https://www.yourwebsite.com
- [3] Krouse, D. (2025, June 19). Canada stocks dip as investors expect potential US involvement in Middle East conflict. [online] Globe and Mail. Available at: https://www.theglobeandmail.com/investing/markets/stocks/canada-stocks-dip-as-investors-expect-potential-us-involvement-in-middle-east-conflict/article39579111/
- [4] The Canadian Press (2025, June 19). TSX hits sixth-straight daily decline as investors worry about US-Iran conflict. [online] Global News. Available at: https://globalnews.ca/news/9054831/tsx-us-iran-conflict/
- [5] Reuters (2025). Your Website. [online] Available at: https://www.yourwebsite.com
- The war-and-conflicts between Israel and Iran have raised concerns in the industry and finance sector, with investors analyzing the potential impact of US involvement on the Canadian stock market.
- The latest in politics, including the Iran-Israel conflict, has been affecting business decisions and personal-finance strategies, with investors cautiously approaching the Canadian stock market.
- The ongoing Iran-Israel conflict is contributing to the volatility in the general-news media, as well as causing disruptions in various commodity markets and business sectors such as Consumer Discretionary, Materials, and Healthcare.
- Amid the Iran-Israel conflict, issues of crime-and-justice and international politics are closely intertwined, raising questions about the potential fallout on financial dealings and business operations, especially regarding Insurance Companies, Automotive Repairs, Banking, Biotech, and various other industries.
