Tech Selloff Rattles Wall Street as Iran Peace Talks Ease Oil — June 23, 2026
A sharp selloff in technology stocks weighed on North American markets Tuesday as investors continued to digest the fallout from Alphabet's steep decline and reassess valuations across Big Tech. Canada's TSX hovered near the 35,000 level, oil drifted lower on progress in U.S.-Iran peace negotiations, and gold pulled back from recent highs as hawkish Federal Reserve signals kept pressure on precious metals.
🇨🇦 Canada — TSX & Economy
| Index / Asset | Level | Change |
|---|---|---|
| S&P/TSX Composite | ~34,857 | ▼ −0.32% |
| CAD/USD | ~$0.705 USD | ▼ −0.19% |
| WTI Crude Oil | ~$73.67 USD/bbl | ▼ −0.26% |
| Canada CPI (May 2026) | 3.2% YoY | ▲ Above 3% target |
The S&P/TSX Composite Index dipped slightly Tuesday, retreating from the 35,000 level it briefly crossed on Monday after Canada's banking regulator freed up capital requirements for major lenders. The pullback came as tech-driven weakness from Wall Street spread northward. Financials had been a bright spot on Monday — RBC and BMO each added more than 1% after the regulator's move — but the sector's gains moderated into Tuesday's session.
Gold miners offered some offset earlier in the week, with Agnico Eagle and Wheaton Precious Metals posting solid gains Monday as gold climbed toward $4,200 USD per ounce. But by Tuesday, gold retreated back below $4,150 as firmer expectations for a U.S. Federal Reserve rate hike later this year applied pressure.
Canada's headline inflation hit 3.2% year-over-year in May — the highest since December 2023 and above analyst forecasts of 3.0%. Gasoline prices surged 33.2% YoY, the biggest pump shock since Russia's Ukraine invasion in 2022, driven by the ongoing Strait of Hormuz disruption. Grocery inflation hit 4.3% YoY. However, the Bank of Canada's core inflation measures (trimmed-mean: 2.0%; median: 2.1%) stayed anchored near the 2% target — making a BoC rate hike at the July 15 meeting unlikely, with markets pricing in a 93% chance of a hold.
For Canadian households, this headline number stings — but the relief may already be in the pipeline. Oil prices have pulled back sharply in June following progress in U.S.-Iran peace talks, which means gasoline prices at the pump should begin to ease heading into summer. If that happens, the June CPI reading could come in considerably lower — and the narrative around a Bank of Canada rate hike this year may cool off again.
🇺🇸 United States — Wall Street
| Index | Level (Mon. Jun 22 Close / Tue. in progress) | Change |
|---|---|---|
| S&P 500 | 7,472.79 | ▼ −0.37% |
| Dow Jones | 51,712.71 | ▲ +0.29% |
| Nasdaq Composite | 26,166.60 | ▼ −1.32% |
| Russell 2000 | 3,004.40 | ▲ +0.83% |
| VIX (Fear Index) | 17.28 | ▲ +2.98% |
⚠️ Note: U.S. markets were closed Friday, June 19 for Juneteenth and reopened Monday, June 22. Index figures above reflect Monday's closing numbers. Tuesday's session is in progress as of publication, with futures pointing to further losses — the S&P 500 ETF (SPY) was down ~1.5% and the Nasdaq 100 ETF (QQQ) fell ~2.7% in premarket.
Wall Street closed Monday's session in split fashion following the Juneteenth long weekend, and Tuesday's session is extending those losses as the tech selloff deepens. The Nasdaq bore the brunt of Monday's damage — Alphabet tumbled roughly 5% after investors grew alarmed over a Reuters report of AI talent departing for Anthropic, compounding existing anxieties over soaring capital expenditure on artificial intelligence infrastructure. Amazon dropped nearly 5% and Meta fell more than 2%. Microsoft also slid around 3%.
The Dow held up thanks almost entirely to Caterpillar, which topped $1,000 per share for the first time in history and contributed roughly 180 points to the index's gain — enough to offset broader weakness. AbbVie also added modest gains after agreeing to acquire Apogee Therapeutics in a $10.9 billion deal. SpaceX continued its post-IPO slide, falling more than 16% on Monday — its third straight daily decline — after announcing a new bond sale, though the stock remains well above its June 12 IPO price.
Investors are watching several key data points this week. The S&P Global Flash PMIs for June drop Tuesday. FedEx reports earnings Tuesday evening and Micron posts Wednesday — both highly anticipated given supply chain and AI chip demand themes. Thursday brings May PCE inflation data, the Fed's preferred gauge, along with a third estimate of Q1 GDP.
Washington and Tehran have agreed to a 60-day roadmap for a final peace deal and the U.S. Treasury has granted Iran a 60-day licence to sell oil on international markets. Shipping activity through the Strait of Hormuz has picked up, with Kuwait and the UAE finding alternative export routes. A full reopening of the strait could release approximately 80 million barrels of supply into the market. WTI crude fell to around $73.67 USD/bbl — down more than 21% over the past month.
🌍 Global Markets
| Market | Level | Change |
|---|---|---|
| 🇬🇧 FTSE 100 | 10,437.85 | ▲ +0.72% |
| 🇩🇪 DAX | 25,139.69 | ▲ +0.62% |
| 🇫🇷 CAC 40 | 8,400.11 | ▼ −0.25% |
| 🇯🇵 Nikkei 225 | ~71,500–72,000 | ▼ −0.60% |
| 🇭🇰 Hang Seng | 23,411.21 | ▼ −1.50% |
| 🇨🇳 Shanghai Composite | 4,131.59 | ▼ −0.76% |
| 🇰🇷 KOSPI (Seoul) | 9,114.55 | ▲ All-time high |
European markets edged higher Tuesday despite an uncertain global backdrop. The FTSE 100 gained 0.72% and the German DAX added 0.62% as the prospect of lower energy prices from Iran deal progress filtered through to industrial and consumer stocks. The political situation in the U.K. added a degree of uncertainty — Prime Minister Keir Starmer resigned Monday, with sterling dipping modestly against the dollar, though gilt markets appeared largely to have priced in the change.
Asia saw diverging results. Japan's Nikkei 225 pulled back about 0.6% Tuesday after a strong Monday rally to record highs, as profit-taking in semiconductor and AI-related stocks took hold following the overnight Wall Street tech selloff. SoftBank Group fell nearly 6%, and chip-related names like Furukawa Electric and Murata Manufacturing also declined. South Korea's KOSPI, meanwhile, hit an all-time high of 9,114 — powered by exceptional strength in domestic semiconductor stocks. Hong Kong's Hang Seng dropped 1.5% as Chinese equities faced renewed pressure.
⛽ Commodities
| Commodity | Price | Change |
|---|---|---|
| WTI Crude Oil | $73.67 USD/bbl | ▼ −0.26% / −21.5% (1 mo.) |
| Gold (Spot) | ~$4,145 USD/oz | ▼ Below $4,150 |
| Gold (CAD approx.) | ~$5,880 CAD/oz | — |
| Bitcoin (BTC/USD) | ~$63,314 | ▼ −0.93% |
Oil continued its dramatic retreat, with WTI crude settling near $73.67 USD/barrel — down more than 21% over the past month as the U.S.-Iran peace framework took shape. The U.S. Treasury's 60-day oil sales licence for Iran and the gradual reopening of Hormuz shipping lanes are already easing supply concerns. If the deal holds, Canadian motorists could see meaningful relief at the pump heading into the summer driving season.
Gold retreated to just below $4,150 USD per ounce Tuesday after surging toward $4,200 on Monday. The pullback reflects growing conviction among investors — and markets — that the Federal Reserve may raise rates as early as September 2026. Both Deutsche Bank and Bank of America revised their forecasts to include a September hike. Gold and rising rate expectations rarely get along, and the yellow metal is feeling the squeeze. Still, given global uncertainty, many analysts see the current level as a consolidation rather than a trend reversal.
📅 What to Watch This Week
- Tuesday (today): S&P Global Flash PMIs for June (Canada & U.S.); FedEx Q4 earnings after market close
- Wednesday: Micron Technology Q3 earnings (key bellwether for AI chip demand); U.S. May new home sales
- Thursday: U.S. May PCE inflation (Fed's preferred measure); U.S. Q1 GDP third estimate; U.S. May durable goods orders
- Friday: University of Michigan revised June consumer sentiment & inflation expectations
- Ongoing: U.S.-Iran peace negotiations in Switzerland; Strait of Hormuz shipping data; BoC July 15 rate decision
💡 What This Means for Canadians
Three things worth keeping in mind from today's market action:
- Gas prices should ease. The May CPI reading of 3.2% looks alarming, but it's largely a rearview mirror number. Oil prices have already dropped over 21% in the past month. If that sticks, June and July pump prices — and the CPI — should fall back toward BoC's comfort zone.
- Your mortgage rate isn't going up in July. Markets put the odds of a Bank of Canada hold on July 15 at 93%. Core inflation staying near 2% gives the BoC room to wait and see how the Iran deal develops before making any move.
- Tech-heavy investors take note. If you hold U.S. index funds or ETFs with significant Big Tech exposure, this week's AI spending concerns (Alphabet, Amazon, Meta) are worth monitoring. The gap between tech giants and the rest of the market is widening again — small caps (Russell 2000 hit 3,000 for the first time this week) and industrials are performing very differently from mega-cap tech.
Comments
Post a Comment