The S&P/TSX Composite Index fell 0.4% to close at 26,329 on Wednesday, pulling back from its record high as investors digested both trade and monetary developments. The Bank of Canada held its key benchmark rate at 2.75 percent, citing the need to assess the impact of US trade policy, while warning that further cuts could be required if tariffs weaken the economy. This decision was underpinned by April’s inflation data, which showed headline CPI easing toward target even as core measures remained elevated. At the same time, Ottawa’s “live” negotiations with Washington to secure exemptions from President Trump’s doubled steel and aluminum tariffs have eased concerns of a broader trade shock and shielded export-dependent sectors. Equities were mostly lower ahead of potential tariff resolutions, with energy names leading declines as oil prices fell after Saudi Arabia signaled it may pursue a large production increase, stoking fears of an oversupplied market.