Canadian stocks fell sharply on Wednesday even as both the Bank of Canada (BoC) and the U.S. Federal Reserve trimmed interest rates by 25 basis points, in line with market expectations. However, cautious commentary from both central banks weighed on sentiment, as investors looked for stronger signals about the path ahead. The S&P/TSX Composite Index plunged by 275 points, or 0.9%, for the day to settle at 30,145 — marking its steepest single-day decline in a week.
While intraday gains in silver and copper prices lifted metals and mining stocks, heavy losses in most other key market sectors, including consumer staples, industrials, real estate, and financials, dragged the TSX benchmark into negative territory.
BoC and Fed trim rates again
The Bank of Canada’s latest rate cut, its second in a row and third in 2025, was highlighted as support for an economy undergoing a “structural transition” amid U.S. trade tensions. BoC governor Tiff Macklem’s cautious tone signalled that further stimulus may be limited, as tariffs have reduced Canada’s productive capacity — a message that likely dampened investor confidence despite the rate relief.
South of the border, the Fed also trimmed rates by a quarter point, with chair Jerome Powell noting that downside risks to jobs had risen even as inflation stayed slightly elevated. His balanced, but uncertain, remarks on future rate moves may have caused market unease, prompting investors to reassess how much more policy support is coming in the near term.
Top TSX Composite movers and active stocks
Constellation Software, Perpetua Resources, Descartes Systems, and Thomson Reuters were the day’s worst-performing TSX stocks, with each diving by at least 5.4%.
Despite the broader market selloff, New Gold (TSX: NGD) climbed by over 11% to $9.81 per share, making it the top-performing TSX stock for the day. This strength in NGD stock came a day after the Toronto-based company posted strong third-quarter results with record free cash flow of $205 million, driven by a 63% surge in gold output at its Rainy River mine.
During the quarter, New Gold’s production hit 115,213 ounces, with Rainy River mine alone contributing over 100,000 ounces at significantly lower costs. The company also paid down $260 million in debt last quarter, further strengthening its balance sheet. On a year-to-date basis, NGD stock is now up 173%.
Lundin Mining, Capstone Copper, and Celestica were also among the session’s top gainers on the Toronto Stock Exchange, with each climbing by at least 4%.
According to the exchange’s daily trade volume data, Cenovus Energy, Royal Bank of Canada, Telus, New Gold, and Capstone Copper were the five most active stocks.
TSX today
Commodity prices were largely mixed in early trading on Thursday, pointing to a flat opening for the resource-heavy main TSX index today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on any global trade-related developments and the latest quarterly U.S. GDP (gross domestic product) data, set to be released this morning.
On the corporate events front, several TSX-listed companies, including TFI International, Canadian National Railway, Baytex Energy, Eldorado Gold, Capstone Copper, Toromont Industries, Restaurant Brands, AltaGas, and Secure Energy Services, will release their latest quarterly earnings reports today.
Market movers on the TSX today
