TSX Today: What to Watch for in Stocks on Wednesday, September 2

After suffering its biggest single-day percentage decline since June, the TSX could see a cautious start today as investors await the Bank of Canada’s interest rate decision.

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Key Points
  • The TSX fell 445 points to 35,826 on Tuesday, marking its biggest drop since June due to inflation concerns from rising oil prices and Canada-U.S. trade tensions.
  • Montage Gold and Skeena Resources plunged over 6.5%, while Athabasca Oil and Parex Resources rose at least 3.5%.
  • Mixed commodity prices suggest a flat TSX start today as investors watch the Bank of Canada’s interest rate decision, U.S. employment data, and Canada-U.S. trade developments.

The Canadian stock market selloff intensified on Tuesday as surging oil and gas prices reignited inflation concerns amid the ongoing escalation in the Middle East, while renewed Canada-U.S. trade tensions further weighed on investor sentiment. The S&P/TSX Composite Index plunged by 445 points, or 1.2%, to settle at 35,826, posting its third straight session of losses and extending the benchmark’s retreat from its recent record highs.

With this, the market benchmark also posted its biggest single-day percentage decline since June. Even as energy and consumer staples shares managed to advance, sharp losses across most other key sectors dragged the TSX lower, with mining, technology, and industrial stocks leading the declines.

tsx today

Top TSX Composite movers and active stocks

Metals and mining stocks like Montage Gold, Skeena Resources, NovaGold Resources, and AbraSilver Resource were the worst-performing TSX stocks for the day, with each diving by at least 6.5%.

On the brighter side, Athabasca Oil, Parex Resources, Canadian Natural Resources, and Tamarack Valley Energy climbed by at least 3.5% each, making them the day’s top-performing TSX stocks.

Bausch Health Companies (TSX: BHC) was also among the session’s top gainers on the Toronto Stock Exchange, as its shares rose 2.5% after the company announced the availability of Solta Medical’s Fraxel FTX in Australia.

The next-generation skin resurfacing system became available to Australian healthcare practitioners on September 1. The Australian launch expands access to the latest aesthetics technology from Bausch Health subsidiary Solta Medical and helps lift investor sentiment toward BHC stock.

According to the exchange’s daily trade volume data, ARC Resources, Canadian Natural Resources, Suncor Energy, Enbridge, and Whitecap Resources were the five most active stocks.

TSX today

Commodity prices were largely mixed in early trading on Wednesday, pointing to a flat open for the resource-heavy main TSX index today.

In addition to the U.S. non-farm employment change data, Canadian investors will keep a close eye on the Bank of Canada’s latest interest rate decision and press conference this morning. Given the recent surge in oil and natural gas prices, the central bank’s comments on inflation and the future path of interest rates could be particularly important for TSX investor sentiment.

Meanwhile, any latest developments related to the U.S.-Iran military escalation and Canada-U.S. trade tensions could remain key drivers of market sentiment throughout the session.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources and Enbridge. The Motley Fool recommends Canadian Natural Resources, Enbridge, and Parex Resources. The Motley Fool has a disclosure policy.

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