TSX posts steepest daily decline since June as gold slides
SPY•Canada's S&P/TSX Composite fell 1.74% to 35,620.03, its steepest daily decline since June 5, as gold prices slid and investors weighed concerns about AI spending and earnings growth.
1. Broad market decline
The S&P/TSX Composite Index ended down 629 points, or 1.74%, at 35,620.03 on Friday, its lowest close since October 14. The index gained 1.09% for October after falling 2.85% in September.
2. Miners and technology lead losses
Technology shares fell 3% and materials shares dropped 4.8% as gold fell 3.5% to a one-year low. Shopify shares fell 6.2%, while TFI International tumbled 17.2% after its quarterly results missed estimates. Financials shed 1.6% and industrials ended 1.2% lower.
3. Investors reassess growth
Investors weighed the potential impact of a pullback in AI spending on earnings growth, following disappointing quarterly results from Intel and Amazon. Canada's economy stalled for a second straight month in August, while investors expect the Bank of Canada to raise interest rates further by January. Energy shares rose 1.7% as U.S. crude futures settled 2.1% higher at $104.12 a barrel.
