Canadian stocks trended lower on Tuesday as investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision while weighing another round of U.S. tariffs on Canadian goods alongside persistent geopolitical uncertainty in the Middle East. The S&P/TSX Composite Index slipped by 120 points, or 0.3%, to settle at 35,582, ending its two-session recovery.
On the one hand, energy stocks continued to rally as West Texas Intermediate (WTI) crude oil futures prices surged above US$105 per barrel as the prolonged U.S.-Iran conflict kept energy supply risks in focus. On the other hand, most other key sectors, including consumer cyclicals, technology, and real estate, faced selling pressure — more than offsetting the gains in energy shares.
Notably, the latest U.S. tariffs imposed 50% duties on a fresh group of Canadian products, including certain metal, paper, and marine goods, adding pressure on companies already dealing with higher cross-border costs.
Top TSX Composite movers and active stocks
Ivanhoe Mines, Bausch Health Companies, AbraSilver Resource, and Restaurant Brands International were the worst-performing TSX stocks for the day, with each diving by more than 4%.
Shares of Brookfield Asset Management (TSX: BAM) also remained under pressure after its subsidiary Brookfield Capital Partners signed a binding agreement to acquire Reliance Worldwide. Under the deal, Brookfield would acquire all RWC shares for US$3.38 each in cash, translating into an enterprise value of about US$2.9 billion.
The offer represents roughly a 31.5% premium to RWC’s unaffected closing price. Given the sizable acquisition and premium involved, investors reacted cautiously to the potential capital commitment and execution risks linked with the transaction, weighing on BAM stock.
On the flip side, Headwater Exploration, Tamarack Valley Energy, Suncor Energy, and Paramount Resources climbed by at least 3.9% each, making them the session’s top-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, BCE, Baytex Energy, Whitecap Resources, and Telus were the five most active stocks on the Toronto Stock Exchange.
TSX today
WTI crude oil prices retreated from their nearly four-month highs in early trading on Wednesday, while metals prices rose sharply. Given these commodity market signals, TSX mining stocks could climb higher at the open today, while shares of energy companies might see some weakness.
While no major domestic economic releases are due, Canadian investors will closely monitor the Fed’s interest rate decision, economic projections, and press conference today. The American central bank is widely expected to raise interest rates, but investors will likely focus more closely on the Fed’s guidance about the path of monetary policy in the coming months.
Investors may also want to keep an eye on the Canada-U.S. trade dispute as businesses adjust to the latest round of tariffs on selected goods.
On the corporate events front, the TSX-listed value retailer Dollarama will release its latest quarterly earnings report today.
Market movers on the TSX today
