TSX hits nearly seven-week low as Fed raises interest rates

Oil gave back some of its recent gains after reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns over Middle East supply disruptions. U.S. crude oil futures settled 3.2% lower at $102.43 a barrel.

The energy sector fell 3.4%, with shares of Athabasca Oil down 7.4%.

The materials group, which includes metal mining shares, ended 0.6% lower as a stronger U.S. dollar weighed on gold.

Declines for railroad stocks contributed to a 0.7% drop for industrials.

Six of the 10 major sectors notched gains, led by a 1.9% advance for utilities as yields on long-dated bonds eased.

Dollarama was a standout. Shares of the value retailer gained 5.5% after the company raised its annual comparable sales growth forecast.

European Commission President Ursula von der Leyen said she wanted to open the door to Canada becoming the EU's first associate member in a push to forge new links among allies in "an openly hostile world".

Canada's main stock index fell on Wednesday to a nearly seven-week low as oil prices dropped and the Federal Reserve hiked interest rates.

The S&P/TSX Composite Index (.GSPTSE) ended down 90.8 points, or 0.3%, at 35,491.27, its lowest closing level since July 31.

Wall Street also lost ground after the Fed raised its key interest rate for the first time in over three years to fight stubbornly high inflation stemming from soaring crude oil prices.

"Today’s decision was largely anticipated following last week’s hotter-than-expected CPI report and the recent rise in oil prices," Thomas Feltmate, a senior economist at TD Economics, said in a note.