Steep intraday declines in metals prices, escalating tensions in the Middle East, and a tech sector sell-off due to hotter-than-expected U.S. consumer inflation data weighed on Canadian stocks on Wednesday, snapping their three-session winning streak. The S&P/TSX Composite Index plunged by 400 points, or 1.1%, for the day to settle at 35,584, registering its second-worst decline in 14 sessions.
Although utility and consumer staples stocks saw renewed buying as investors looked for stability amid broader market volatility, heavy losses in many other main sectors, including mining and technology, dragged the TSX benchmark down.
Top TSX Composite movers and active stocks
Perpetua Resources, Energy Fuels, Celestica, and Americas Gold and Silver were the day’s worst-performing TSX stocks, with each diving by at least 7.5%.
On the brighter side, Labrador Iron Ore Royalty (TSX: LIF) climbed by 4.2%, despite the mining sector-wide sell-off, making it the session’s top-performing TSX stock. This rally in LIF stock came after the Toronto-based firm shared an update on the third-quarter production and sales of Iron Ore Company of Canada (IOC), based on Rio Tinto’s latest operational report.
In the September quarter, IOC produced 3.8 million tonnes of saleable iron ore, including 2.46 million tonnes of pellets and 1.34 million tonnes of concentrate. Notably, Labrador Iron Ore Royalty holds a 15.1% ownership stake in IOC and receives a 7% royalty on its iron ore products, along with a commission on sales. The latest production and sales update boosted investor confidence in LIF stock, triggering a buying spree.
Shares of Canadian Utilities (TSX: CU) also jumped 3.2% to $49.72 apiece after the Calgary-based energy infrastructure company announced the start of construction on its $2.9 billion Yellowhead Pipeline project in Alberta. The company expects the pipeline, its largest project to date, to enter service by late 2027.
Meanwhile, shares of Emera (TSX: EMA) also climbed more than 3%, as investors continued to assess its recently announced merger with Canadian Utilities. The proposed deal would create a larger energy infrastructure company with an estimated enterprise value of $72 billion. Progress on the pipeline project and optimism surrounding the planned merger backed buying in both utility stocks.
Based on their daily trade volume, Enbridge, Telus, TD Bank, Canadian Natural Resources, and Athabasca Oil were the five most active stocks on the Toronto Stock Exchange.
TSX today
Crude oil and base metals trended lower in early trading on Thursday, while gold and silver prices showed moderate recovery. These trends could keep the commodity-heavy main TSX index volatile at the open today.
While no major domestic economic releases are due, Canadian investors will keep an eye on the latest U.S. wholesale inflation and retail sales reports this morning.
These figures could provide fresh clues about inflationary pressures, consumer spending trends, and the Federal Reserve’s next interest rate decisions.
Meanwhile, escalating tensions in the Middle East could keep TSX investors on edge today after reports suggested that the U.S. military could be preparing for additional strike options against Iranian energy infrastructure and nuclear facilities.
On the trade front, the continued lack of progress in formal Canada-U.S. negotiations could remain another source of uncertainty for Canadian equities.
Market movers on the TSX today
