The selloff in Canadian stocks intensified on Wednesday after the U.S. Federal Reserve cut interest rates by 25 basis points, which was in line with expectations, but it hinted at a cautious outlook for further monetary easing. An apparent shift in the Fed’s tone, coupled with big intraday declines in gold and silver prices, drove the S&P/TSX Composite Index down by 563 points, or 2.2%, to 24,557 — marking its worst single-day percentage decline since February.
While all main sectors ended the session with losses, the market selloff was mainly led by massive declines in technology, mining, healthcare, and real estate stocks.
The U.S. Fed could turn “more cautious”
In his policy press conference, the Fed chair Jerome Powell highlighted the central bank’s careful balancing act as it navigates the twin goals of fostering maximum employment and achieving stable prices. However, his comments about being “more cautious” with future rate adjustments left investors concerned about the pace of monetary easing in 2025.
Top TSX Composite movers and active stocks
Shopify, Calibre Mining, SilverCrest Metals, and Brookfield Asset Management were the worst-performing TSX stocks for the day, with each diving by more than 6%.
Despite steep declines in most mining stocks, shares of Torex Gold Resources (TSX: TXG) inched up by 7.2% to $29.05 per share, making it the day’s top-performing TSX stock. This rally in TXG stock came a day after the Toronto-headquartered gold miner announced the lifting of a temporary suspension at its Morelos Complex in Mexico.
This resumption of activities includes open-pit and underground mining, processing operations, and continued work on the Media Luna Project, which is likely to help Torex Gold remain on track with its project schedule. On a year-to-date basis, TXG stock is now up 99%.
GFL Environmental and Quebecor also climbed by 1.5% each, positioning them among the session’s top gainers on the Toronto Stock Exchange.
According to the exchange’s daily trade volume data, Canadian Natural Resources, Suncor Energy, Enbridge, Cenovus Energy, and Toronto-Dominion Bank were the five most active stocks.
TSX today
After tanking by 2.3% in the last session, gold spot prices staged a recovery in early morning trading on Thursday, which may help TSX gold mining stocks recover at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep a close eye on the latest quarterly GDP (gross domestic product) growth, monthly manufacturing, existing home sales, and weekly jobless claims data from the United States this morning. Even as investors continue to assess the potential impact of the recent apparent shift in the Fed’s outlook, these reports could provide important clues about the U.S. economy’s strength and influence the near-term outlook for Canadian equities.
On the corporate events side, TSX-listed BlackBerry will announce its November quarter financial results after the market closing bell on December 19. Street analysts expect the Waterloo-based tech firm to post an adjusted net loss of US$2.2 million for the quarter with US$150.8 million in revenue.
Market movers on the TSX today
