TSX Today: What to Watch for in Stocks on Tuesday, February 4

As the Trump administration temporarily pauses tariffs on Canada, TSX investors may shift their focus to corporate earnings and updates related to trade negotiations.

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tsx today

The selloff in Canadian stocks intensified on Monday as concerns about the escalating U.S.-Canada trade war kept investors on edge. However, U.S. president Donald Trump’s announcement that he will pause tariffs on Mexico and Canada for a month gave investors a sigh of relief.

After tanking by as much as 790 points in intraday trading, the S&P/TSX Composite Index staged a recovery later in the session to close at 25,242 with a 291-point, or 1.1%, decline.

As fears of a global trade war haunted investors, spot gold prices inched up to their all-time high yesterday. This factor, along with strength in silver and copper prices, helped mining stocks trade positively. However, heavy losses in most other key sectors, mainly in healthcare, industrials, and financials, dragged the TSX benchmark downward.

Top TSX Composite movers and active stocks

As U.S. and Canadian tariff worries spooked investors, shares of goeasy, BRP, Air Canada, Tilray, and Magna International dived by over 6% each, making them the worst-performing TSX stocks for the day.

Bombardier (TSX:BBD.B) slipped by 2.7% to $82.76 per share, making it among the Toronto Stock Exchange’s bottom performers. After it tanked by more than 12% in intraday trading, Bombardier stock rebounded as the International Association of Machinists and Aerospace Workers told Reuters that its executives are pressing the Trump administration to pause tariffs on Canada.

After rallying by 84% in 2024, Bombardier stock has lost over 15% of its value so far this year as investors continue to assess the impact of potential tariffs on its profitability.

In contrast, Equinox Gold, Definity Financial, SilverCrest Metals, and IAMGOLD climbed by at least 3.5% each, making them the day’s top-performing TSX stocks.

Based on their daily trade volume, Enbridge, Manulife Financial, TD Bank, Scotiabank, and Canadian Imperial Bank of Commerce were the five most active stocks on the exchange.

TSX today

In another big relief for Canadian investors, the U.S. administration temporarily paused planned tariffs on Canadian imports, citing initial progress by Canada in addressing concerns over illegal migration and drug trafficking at the northern border. As this news came after the market closing bell on Monday, it may help the main TSX benchmark open higher as investors take a breath of relief following days of market volatility.

Meanwhile, spot gold prices continued to inch up further in early trading on Tuesday, which may lift TSX mining stocks at the open today.

While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest job openings data from the United States this morning. This economic release, corporate earnings, and new updates related to U.S.-Canada trade negotiations could keep the market volatile.

The TSX-listed Allied Properties REIT and Finning International are expected to announce their latest quarterly results after the market closing bell on February 4.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jitendra Parashar has positions in Air Canada, Enbridge, Magna International, and Toronto-Dominion Bank. The Motley Fool recommends Bank Of Nova Scotia, Brp, Enbridge, Magna International, and Tilray Brands. The Motley Fool has a disclosure policy.

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