TSX Today: What to Watch for in Stocks on Tuesday, August 25

The TSX could face pressure at the open today as commodity prices weaken, while investors focus on Canadian bank earnings and escalating Canada-U.S. trade tensions.

Key Points
  • Amid ongoing U.S.-Iran tensions and Canada-U.S. trade frictions, the TSX Composite managed a slight gain on Monday, supported by stronger gold prices and hopes for strong bank earnings.
  • Seabridge Gold, NovaGold Resources, I-80 Gold, and Discovery Mining led the market rally, while Thomson Reuters rose 3.3% following its launch of a proprietary AI model.
  • Falling commodity prices may pressure the TSX at the open today, while Bank of Montreal and Scotiabank earnings announcements, along with developments related to Canada-U.S. trade, could influence market sentiment and volatility.

Even as ongoing U.S.-Iran tensions and renewed Canada-U.S. trade frictions kept investors cautious, Canadian stocks managed to start the new week on a slightly positive note as strengthening gold prices, easing Treasury bond yields, and hopes of strong bank earnings later in the week boosted investor confidence. The S&P/TSX Composite Index advanced by 94 points, or 0.3%, on Monday to settle at 36,714, narrowing the gap from its all-time highs and extending its rebound for a second straight session.

While consumer cyclical and industrial stocks trended lower amid heightened trade uncertainty, strong intraday gains in other key sectors like mining, real estate, and technology helped the TSX extend its recovery.

tsx today

Top TSX Composite movers and active stocks

Seabridge Gold, NovaGold Resources, I-80 Gold, and Discovery Mining were the top-performing TSX stocks for the day, as they jumped by at least 4.7% each.

Shares of Thomson Reuters (TSX: TRI) also climbed by 3.3%, making it among the day’s top gainers on the Toronto Stock Exchange. This rally in TRI stock came after the company launched Thomson, its first proprietary large language model developed in-house.

Thomson Reuters invested $40 million to train the model using its proprietary content and expertise, while retaining full ownership and control. The company said early evaluations put Thomson on par with leading frontier models across a range of tasks, with its first deployment planned in CoCounsel Legal. Investors welcomed the launch as another step in Thomson Reuters’s push to expand its artificial intelligence (AI) capabilities.

On the flip side, Linamar, Magna International, BRP, and Bombardier were the session’s worst-performing TSX stocks, as they plunged by at least 5.9% each.

Based on their daily trade volume, Canadian Natural Resources, Manulife Financial, Enbridge, Barrick Mining, and B2Gold were the five most active stocks on the exchange.

TSX today

Commodity prices across the board fell in early Tuesday trading, which could pressure the resource-heavy main TSX index at the open today.

While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest U.S. consumer confidence data for August this morning.

As Canadian bank earnings season kicks off today, Bank of Montreal and Scotiabank will announce their latest quarterly results today, which could keep their shares in focus throughout the session.

In addition, Canada-U.S. trade tensions could remain a key driver of market sentiment after U.S. president Donald Trump threatened to raise tariffs on Canadian automobiles, trucks, and auto parts from 25% to 50% starting January 1. Canadian officials are expected to hold a news conference this morning to outline measures aimed at supporting workers and businesses affected by the escalating trade dispute. This development could keep Canadian auto and manufacturing stocks particularly volatile.

Investors may also closely follow escalating U.S.-Iran tensions after Washington expanded its secondary sanctions program, targeting several sectors. Iran has threatened retaliation, keeping geopolitical uncertainty and the outlook for global energy supplies in focus for TSX investors.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bank Of Montreal, Canadian Natural Resources, Enbridge, and Magna International. The Motley Fool recommends B2Gold, Bank Of Nova Scotia, Brp, Canadian Natural Resources, Enbridge, Linamar, Magna International, and Thomson Reuters. The Motley Fool has a disclosure policy.

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