Canadian stocks fell off their record highs on Wednesday as investors reacted to cautious signals from both the U.S. Federal Reserve and the Bank of Canada (BoC), which opted to hold interest rates steady. The S&P/TSX Composite Index plunged by 170 points, or 0.6%, to settle at 27,370 — registering its biggest single-day decline in over two months.
Despite a minor strength in utility stocks due to their defensive appeal, most major sectors ended the session in the red, with healthcare, mining, and technology stocks suffering steep losses as rate-sensitive sectors faced renewed pressure.
Investors appeared spooked by the Fed’s warning that uncertainty around the economic outlook remains elevated, despite holding rates steady. Meanwhile, the BoC flagged signs of weakening in trade-dependent sectors and rising economic slack, further dampening sentiment.
Adding to the unease, U.S. gross domestic product (GDP) grew 3% in the second quarter, driven by strong consumer spending. But the data failed to lift markets, as it raised concerns that the Fed may keep rates higher for longer.
Top TSX Composite movers and active stocks
Capital Power (TSX:CPX) stock dived by nearly 7% to $58 per share, making it the worst-performing TSX stock for the day. This selloff in CPX stock came after the Edmonton-based firm posted a surprise net loss of $131 million in the second quarter, compared to a $76 million profit a year earlier.
While Capital Power’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) remained stable at $322 million, its revenue tumbled 43% year over year to $441 million due mainly to lower power prices and reduced market trading activity. The company also raised its 2025 capital spending forecast. On a year-to-date basis, CPX stock is now down 9%.
Hudbay Minerals, Intact Financial, and Bausch Health also slipped by at least 6% each, making them among the day’s bottom performers on the Toronto Stock Exchange.
On the flip side, Parex Resources climbed 6.3% following stronger-than-expected quarterly financial results powered by lower production costs and favourable oil price differentials.
Toromont Industries and Tamarack Valley Energy were also among the session’s top TSX gainers, with each climbing by at least 2.6%.
Based on their daily trade volume, Cenovus Energy, Baytex Energy, TD Bank, Whitecap Resources, and Manulife Financial were the five most active stocks on the exchange.
TSX today
Gold edged up early Thursday, but copper prices plunged after the U.S. imposed a 50% tariff on copper-based products. The move excluded raw copper, offering little relief to miners. Given the uneven commodity trends, the commodity-heavy TSX may open on a mixed note today.
In addition to Canada’s GDP growth numbers, TSX investors will closely monitor the important U.S. personal consumption expenditure data this morning for further clues on inflation trends.
As corporate earnings continue in full swing, many TSX-listed companies, including ARC Resources, Definity Financial, Fairfax Financial Holdings, NFI Group, Aecon Group, TMX Group, Canadian Utilities, Gildan Activewear, Brookfield Infrastructure Partners, Cameco, Lightspeed Commerce, TC Energy, Bombardier, Cenovus Energy, and Colliers International Group, will announce their latest quarterly results today. These key earnings reports could add to the market’s overall volatility and stock-specific movement through the session.
Market movers on the TSX today
