- The TSX Composite closed at 36,514, down 0.33% or roughly 120 points, on below-average volume as macro anxiety dominated Monday’s session.
- Gold surged 1.06% to US$4,476.60/oz (CAD$6,187) and copper jumped 1.30% to US$6.68/lb, lifting TSX materials stocks against the broader decline.
- Canadian bank stocks and tech names led the downside, pressured by higher-for-longer rate expectations following last Friday’s strong Canadian jobs report.
- Tuesday’s key catalysts include Canadian housing starts, U.S. NFIB data, Fed speakers, and overnight Chinese trade figures with direct implications for copper prices.
TSX Closes Lower, But Commodities Cushion the Blow
The S&P/TSX Composite Index finished Monday’s session at 36,514, down 120 points or 0.33%, in line with a broad North American equity retreat. The S&P 500 fell 0.38% to 7,719 and the NASDAQ shed 0.29% to close at 26,507, confirming that today’s pressure was macro-driven rather than Canada-specific. Volume on the TSX came in below the 30-day average, suggesting institutional players were largely sitting on their hands heading into a data-heavy week rather than aggressively selling positions.
Winners: Materials Stocks Shine on Gold and Copper Surge
The day’s clear outperformers were in the materials sector, buoyed by simultaneous rallies in gold and copper. Spot gold climbed 1.06% to US$4,476.60/oz (approximately CAD$6,186.86/oz at the 1.3820 USD/CAD rate), its highest level in recent memory, as safe-haven demand picked up alongside rate uncertainty. Copper added 1.30% to US$6.6825/lb (CAD$9.24/lb), supported by tightening inventory data out of the LME. Senior gold producers and copper-levered names on the TSX were among the top percentage gainers on the day, with the TSX Materials sub-index bucking the broader index decline to post a modest green close.
Silver also participated in the precious metals rally, rising 1.06% to US$66.75/oz (CAD$92.25/oz), lending further support to diversified royalty and streaming names listed on the TSX.
Losers: Financials and Tech Dragged by Rate Overhang
Canadian bank stocks led the downside, with rate-sensitive financials bearing the brunt of today’s macro anxiety. Investors are pricing in the possibility that the Bank of Canada holds rates higher for longer following last week’s stronger-than-expected Canadian jobs print. The TSX Financials sub-index was among the session’s worst performers, with several Big Six names posting declines of 0.5% to 0.9%. Canadian tech and growth-oriented names also struggled, mirroring NASDAQ weakness, as higher-for-longer rate narratives compress growth stock multiples.
Energy was a notable non-event: WTI crude held flat at US$91.48/bbl and Brent at US$96.28/bbl (CAD$133.04/bbl), giving oil sands producers and midstream names little catalyst in either direction. The TSX Energy sub-index ended the session essentially unchanged.
What Drove the Day
The primary narrative today was a risk-off rotation ahead of key U.S. and Canadian inflation data due later this week. Friday’s Canadian labour report — which showed stronger job creation than forecast — reinforced expectations that the Bank of Canada has limited room to cut rates in Q4 2026. That backdrop pushed money out of rate-sensitive equities and into hard assets, explaining the divergence between falling bank stocks and rising gold. U.S. Treasury yields ticked higher overnight, adding a second headwind for growth and financial names on both sides of the border.
Tomorrow’s Watchlist
Tuesday, September 8 brings several catalysts that could reset the tone. Canadian housing starts data for August is due pre-market — a hot print would further cement the BoC’s hold stance. In the U.S., markets will be watching NFIB Small Business Optimism and any Fed commentary from scheduled speaker appearances. Overnight, watch for Chinese trade balance data, which carries direct implications for copper and base metals demand — particularly important given today’s copper surge. Any disappointment from Beijing could give back today’s materials gains quickly. Earnings season remains quiet, but a handful of small-cap TSX-V resource names are scheduled to report after the close tonight.
