By Geoffrey Morgan and Monique Mulima
(Bloomberg) — Canada’s stocks benchmark tumbled Tuesday, under-performing its U.S. counterpart as inflation in the country quickened more than expected while falling gold prices weighed on the mining sector.
The S&P/TSX Composite Index dropped as much as 1.8% as of 11:55 a.m. in Toronto heading for its worst day since April 10, when the market was broiled in the U.S. tariff-induced turmoil. The performance stands in sharp contrast to the U.S. benchmark, the S&P 500, which is gaining for a third-straight session.
Materials, the second-largest sector by weight in Toronto, is both the worst-performing of 11 sectors in the market and also the biggest drag on Canadian stocks on Tuesday as gold and silver prices posted their steepest drop in years.
Gold miners have surged this year to occupy a 12% weighting on the Toronto stocks gauge as the price of the precious metal rallied to record highs.
The market moves come after traders trimmed bets that the Bank of Canada would cut interest rates next week as inflation accelerated to 2.4% in September, ahead of expectations, and core measures heated up.
The odds of a rate cut at next week’s meeting are now “another coin flip,” Citi economist Veronica Clark wrote in a Tuesday research note.
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Last modified: October 21, 2025