Canadian equities started the new week with a steep decline as investors reacted to renewed geopolitical tensions, mixed commodity prices, and persistent uncertainty around the Canada-U.S. trade outlook. The S&P/TSX Composite Index plunged by 391 points, or 1.1%, on Tuesday to settle at 36,123, erasing all its month-to-date gains.
Canada-U.S. trade tensions remained in focus Tuesday after tariffs of 15% to 50% on $27.8 billion worth of U.S. goods took effect. Prime Minister Mark Carney warned that reducing Canada’s reliance on the U.S. would come at a cost, keeping trade-sensitive stocks in focus.
On the one hand, surging base metals and crude oil prices supported commodity-linked sectors, while utility stocks also saw renewed buying interest amid increased demand for defensive investments. On the other hand, weakness across technology, consumer cyclical, and financial stocks weighed on the TSX benchmark.
Top TSX Composite movers and active stocks
Shopify, Thomson Reuters, BRP, Kinaxis, and Constellation Software were the worst-performing TSX stocks for the day, as they dived by at least 5.6% each.
Despite the broader market selloff, shares of Ivanhoe Mines (TSX: IVN) rallied by nearly 13% after the company announced a major expansion of its Western Forelands copper discovery in the Democratic Republic of the Congo.
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Ivanhoe said contained copper at the Makoko District increased by 30% to about 12 million tonnes following roughly 64,000 metres of drilling. The company also plans to expand drilling further and start a Makoko scoping study in early 2027. The sharp increase in its resource base, along with the potential for shallow open-pit development and faster project advancement, fueled a buying spree in IVN stock.
NGEx Minerals, Ero Copper, and Capstone Copper also rallied by at least 7.6% each, making them among the day’s top gainers on the Toronto Stock Exchange.
Meanwhile, Tamarack Valley Energy (TSX: TVE) trended higher after announcing a $10 billion strategic combination with Headwater Exploration in an all-stock transaction.
The Tamarack-Headwater deal would create a larger pure-play Clearwater oil producer with run-rate production of more than 80,000 barrels of oil equivalent per day. The expected financial benefits, stronger production scale, and higher dividend helped lift investor sentiment toward TVE stock.
Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Enbridge, Ivanhoe Mines, and Manulife Financial were the day’s five most active TSX stocks.
TSX today
West Texas Intermediate (WTI) crude oil futures jumped past US$95 per barrel early Wednesday, hitting their highest level in over three months. At the same time, gold and silver prices also trended higher as investors sought safe-haven assets amid another escalation in the U.S.-Iran conflict. This commodity market volatility came after U.S. forces targeted five Iranian oil tankers and Tehran launched missile attacks on a U.S. base in Jordan.
These commodity market moves could support the TSX’s heavyweight energy and precious-metals sectors at the open today, although another surge in oil prices may also revive concerns about inflation and keep rate-sensitive stocks under pressure.
Canada-U.S. trade tensions could add volatility Wednesday after Washington announced new retaliation against Ottawa’s counter-tariffs. The measures include import bans on most Canadian alcohol and motorcycles, along with 50% tariffs on several other goods, which could also keep trade-sensitive stocks in focus on the TSX today.
On the corporate events side, the Montréal-based Transcontinental will announce its latest quarterly results after the market closing bell.