TSX slides 1% as tech and mining stocks retreat

Canada's S&P/TSX Composite Index fell 351.54 points, about 1%, to close at 35,973.45, pulling back from a four‑week high set the day before. The drop was sparked by weaker gold and copper prices that hit metal‑mining shares, while the technology segment slipped as investors grew uneasy about AI‑related spending. The Nasdaq led losses on Wall Street after earnings from Tesla and Meta failed to calm concerns over rising AI costs, and higher oil prices added to the nervous mood. Brian Madden, chief investment officer at First Avenue Investment Counsel, said investors are beginning to worry about spending and highlighted Celestica's strong link to AI work for large cloud providers. Celestica shares plunged 12%, pushing the technology sector down 1.6%. The broader materials group, which includes mining firms, fell 5.6%, marking its lowest close since early August. Gold prices dropped 2.7% and copper slid 2.8% as oil rose 2.4% to $99.47 a barrel, feeding inflation worries ahead of next week’s Federal Reserve meeting. Energy stocks slipped 1.7% despite the oil rally. Safe‑haven demand for government bonds lowered the Canadian 10‑year yield by 7.9 basis points to 3.786%. Real‑estate gained 2.8%, and industrials rose 2.3% after Waste Connections jumped 9.5% and logistics firm Mullen Group climbed 11.5% following better‑than‑expected quarterly results.

Context

Metal‑mining stocks often react sharply to changes in commodity prices, while tech shares are sensitive to shifts in spending on emerging technologies like artificial intelligence. Rising oil prices can lift inflation expectations, influencing both bond yields and equity market sentiment.