TSX Drops 258 Points as Commodity Selloff Drags Materials and Energy Lower

The TSX Composite closed at 35,751, shedding 258 points or 0.72% on Wednesday, September 23, 2026 — its worst single-session loss in three weeks. Volume was above the 90-day average, signalling broad-based selling rather than thin-market drift. The selloff mirrored weakness south of the border, where the S&P 500 fell 0.76% to 7,706 and the NASDAQ slipped 0.69% to 26,936.

Commodities Led the Damage

The day’s heaviest blow came from precious metals and energy. Gold dropped 1.26% to USD $4,321.20/oz (approximately CAD $6,088/oz at the prevailing USD/CAD rate of 1.4089) — a decline of roughly USD $55 in a single session. Silver skidded 1.61% to USD $64.87/oz (CAD ~$91.40/oz), its steepest one-day retreat in over a month. WTI crude bore the sharpest percentage loss of any major commodity, tumbling 2.10% to USD $92.60/bbl, while Brent crude eased a more modest 0.69% to USD $98.57/bbl. Traders cited renewed concerns over demand softness following a weaker-than-expected U.S. manufacturing PMI print released mid-morning.

Sector and Stock Movers: Winners

Copper was the standout exception, gaining 0.29% to USD $6.7790/lb, lending modest support to base-metals-focused names on the TSX. Teck Resources (TECK.B) outperformed the broader materials sector, closing up approximately 1.4% as copper’s resilience offset gold weakness in the company’s diversified portfolio. In financials, Royal Bank of Canada (RY) edged up 0.3% after analysts at a major Bay Street firm reiterated an outperform rating ahead of next week’s fiscal Q3 earnings, providing a rare pocket of stability in an otherwise red tape.

Sector and Stock Movers: Losers

Energy was the worst-performing TSX sector, dragged lower by the crude selloff. Cenovus Energy (CVE) fell 2.8% and Canadian Natural Resources (CNQ) dropped 2.5% as WTI’s slide below the psychologically significant USD $93 level triggered stop-loss selling. In materials, senior gold producer Agnico Eagle Mines (AEM) declined 2.2% in lockstep with bullion, while silver-leveraged First Majestic Silver (FR) was among the hardest-hit names in the sector, shedding 3.1% on the double-whammy of lower silver prices and elevated operating cost concerns flagged in a morning research note.

What Drove the Day

The catalyst was a U.S. S&P Global Manufacturing PMI reading of 47.3 for September — below the 48.5 consensus and firmly in contraction territory — which reignited fears that Federal Reserve tightening is still working its way through the real economy. Risk-off flows strengthened the U.S. dollar index, which in turn pressured commodity prices denominated in USD. The USD/CAD rate held near 1.4089, offering only marginal relief to Canadian exporters translating foreign revenues back into loonies.

What to Watch Tomorrow

Thursday’s session will be shaped by several catalysts. Canadian retail sales data for July hits at 8:30 AM ET — Bay Street consensus is sitting at +0.4% month-over-month; a miss could add further pressure to consumer discretionary names. In the U.S., weekly jobless claims (also 8:30 AM ET) will be scrutinized for any sign of labour-market cracking that could shift Fed rate expectations. Overnight, Bank of Japan Governor Ueda speaks in Tokyo — any hawkish pivot language could ripple into currency and commodity markets before the North American open. Finally, watch crude oil inventories from the EIA (delayed one day this week); a surprise build could extend WTI’s pain below the USD $92 handle.