The Canadian stock market fell sharply on Tuesday, erasing all its gains from the previous session as metal prices pulled back sharply and investors reacted to hotter-than-expected consumer inflation data. The S&P/TSX Composite Index closed down 528 points, or 1.7%, to finish at 29,889 — marking its steepest single-day decline in over six months.
While all key market sectors fell sharply, the TSX selloff was mainly led by heavy declines in mining, healthcare, and tech stocks.
According to Statistics Canada’s latest report, Canada’s consumer price index climbed 2.4% in September, reflecting a significant increase compared with a 1.9% rise in the previous month. The uptick in inflation was mainly driven by higher grocery prices, reigniting concerns about the Bank of Canada’s interest rate outlook.
Top TSX Composite movers and active stocks
As precious metals prices fell sharply, mining stocks like Aya Gold & Silver, Lundin Gold, Perpetua Resources, Endeavour Silver, and NovaGold Resources tanked by over 13% each, making them the worst-performing TSX stocks for the day.
Discovery Silver (TSX:DSV) was also among the bottom performers on the Toronto Stock Exchange, as its shares plunged nearly 15% to $4.87 apiece. This selloff in DSV stock followed the company’s announcement of a new Resource Development Agreement with the Taykwa Tagamou Nation, aimed at promoting cooperation on mining projects within the Nation’s traditional territory.
While the agreement ends a legal dispute and is positioned as a step toward responsible development, investors may have reacted to lingering uncertainties around the implementation of the deal and its broader impact on project timelines. In addition to these uncertainties, sharp intraday declines in silver prices also added to the downward pressure on DSV stock.
On the brighter side, Richelieu Hardware, Magna International, and Birchcliff Energy climbed by at least 2.3% each, making them the session’s top-performing TSX stocks.
Based on their daily trade volume, Cenovus Energy, B2Gold, Kinross Gold, Capstone Copper, and Whitecap Resources were the five most active stocks on the exchange.
TSX today
Precious metals prices extended their losses in early Wednesday trading, suggesting continued pressure on TSX mining stocks at the open today.
While no major economic releases are due, Canadian investors will continue to closely watch corporate earnings from both sides of the border, with investors hoping strong results can help offset recent macro-driven volatility.
Several TSX-listed companies, including Whitecap Resources, West Fraser Timber, Teck Resources, Winpak, and Mullen Group, will announce their latest quarterly results today, which could keep their stocks in focus throughout the trading session.
Market movers on the TSX today
