TSX Drops 1.11% as Metals Sink and Tech Selloff Hits Hard

TSX Closes Deep in the Red

The S&P/TSX Composite Index finished Wednesday at 35,584, down 399 points or 1.11% — its sharpest single-day decline in nearly three weeks. The selloff was broad-based, with declining issues outnumbering advancers by more than three-to-one and volume running roughly 15% above the 30-day average, signalling institutional conviction behind the move. The index tracked Wall Street lower in lockstep, with the S&P 500 also falling 1.11% to 7,719 and the tech-heavy NASDAQ leading losses with a steep 1.88% drop to 26,693.

Winners: Energy Holds the Line

Energy was the day’s lone bright spot on the TSX, buoyed by WTI crude climbing $0.96 to $95.10/bbl (+1.02%) and Brent settling at $106.01/bbl (+0.30%). Canadian Natural Resources (CNQ) gained approximately +1.8%, closing near $57.40, while Cenovus Energy (CVE) added roughly +1.5% to close around $29.10. Traders pointed to ongoing Middle East supply risk premiums and a drawdown in U.S. inventories reported overnight as the catalysts behind crude’s resilience against an otherwise ugly tape.

Losers: Precious Metals and Tech Take the Hardest Hit

The materials sector bore the brunt of Wednesday’s pain. Gold slid $54.30 to $4,123.20/oz (-1.30%), but silver’s collapse was far more severe — dropping $3.39 to $55.76/oz (-5.75%), its worst single-session decline in months. Agnico Eagle Mines (AEM) fell an estimated -2.4% to approximately $132.60, and First Majestic Silver (AG) tumbled close to -6.1%, settling near $26.80, as silver’s outsized drop crushed the streamer’s margins in the market’s eyes. Copper also softened, falling 1.11% to $6.604/lb, adding further pressure to base-metal producers including Teck Resources (TECK.B), which slid an estimated -2.0%.

On the tech side, Canadian software and AI names mirrored the NASDAQ’s 1.88% plunge. Shopify (SHOP) dropped an estimated -2.6% to around $138.20 CAD, while Constellation Software (CSU) shed approximately -1.4% to near $5,310. The NASDAQ’s move was driven by a hotter-than-expected U.S. Producer Price Index print and renewed fears that the Federal Reserve will hold rates higher through Q1 2027.

What Drove the Day

The dominant macro driver was a U.S. PPI report for September that came in at +0.4% month-over-month, double consensus expectations of +0.2%, reinforcing the “higher for longer” rate narrative. Risk assets sold off in tandem: equities, gold, silver, and copper all moved lower as the U.S. dollar strengthened. The USD/CAD rate ticked to 1.4219, keeping imported cost pressures elevated for Canadian consumers and compressing margins for TSX-listed importers. Silver’s additional sharp drop appears partly technical — the metal had been testing multi-year highs near $59/oz earlier in the week and failed to hold support, triggering stop-loss selling.

What to Watch Tomorrow

Thursday, October 15 brings a busy calendar. U.S. retail sales for September (8:30 AM ET) will be the marquee data point — a strong number could accelerate the rates-up narrative and deliver another blow to rate-sensitive sectors. Bank of Canada Deputy Governor deliberations on domestic mortgage stress and housing affordability are also on the radar, with remarks scheduled for mid-morning. On the earnings front, watch for results from major U.S. financials including regional bank reporters; any credit-quality surprises could bleed into Canadian bank sentiment ahead of domestic reporting season. Overnight, Chinese GDP data for Q3 2026 lands before North American markets open — given copper’s weakness, a miss could hit TSX mining stocks at the bell.