Canada stocks pull back after hitting record high as tech shares retreat

Canada's benchmark stock index retraced its record high of 36,844.73 earlier in the day, as a downturn in technology shares wiped out early gains and pushed the index lower in late-morning trading. This came after a string of four consecutive record closing highs, with the S&P/TSX composite index poised for its sixth straight day of gains — the longest winning streak since April.

However, market sentiment reversed course. The index slipped 0.26% to 36,673.25 at 3:13 PM EST, down 97.15 points, or 0.3%, from its closing level. A retail sales report that fell short of expectations in the U.S. contributed to a cautious atmosphere in North American markets, dampening appetite for risk. Geopolitical tensions in the Middle East also loomed large, with ongoing Middle East conflict negotiations seemingly stalled.

Talks failed to produce a resolution, and the U.S. indicated it might maintain a naval blockade of Iran indefinitely. This situation kept investors anxious over potential disruptions to global oil supplies. Meanwhile, Wall Street faced a mixed performance, with the S&P 500 set for a small gain after a series of economic data points suggested a reduced likelihood of a Federal Reserve rate increase at its September meeting.

The Dow Jones Industrial Average fell marginally, while the S&P 500 and Nasdaq Composite both edged down on the day. The week-long performance for the S&P 500 was modest, up 0.3%, while the Nasdaq remained relatively flat. FedWatch attributed a roughly 65% probability to interest rates staying unchanged next month. Gold prices saw a slight retreat, as investors booked some gains amid diminished expectations of a Fed interest rate hike in the near term. Spot gold was last up 0.3% at $4,362.04 per ounce, after a weekly surge of 4.5%.