TSX Drops from Record Highs

The S&P/TSX Composite fell 0.5% to close at 29,816 on Tuesday, halting its recent record-setting rally as investors digested cautious remarks from Federal Reserve officials and questioned the durability of the artificial intelligence trade.

Fed Chair Jerome Powell said equity prices looked "fairly highly valued" and stressed the difficulty of balancing inflation risks with a weakening labour market.

The tech sector led the decline, with Shopify and Constellation Software tumbling 4.5% and 4.8% as US peers fell, while financials also weighed on the index.

Energy giants Suncor, Imperial Oil and Cenovus bucked the trend, each adding between 0.9% and 1.5% as crude oil ended a four-day slide.

Major miners outperformed as well as gold extended its rally to fresh highs.