Canada's benchmark index veered sharply lower on Tuesday, trading near four-week lows, as rising bond yields and declines in precious metal prices dampened risk appetite, while an uptick in oil prices kept broader declines in check.
The TSX stumbled 379.68 points, or 1.1%, to 35,890.80.
The Canadian dollar faded 0.03 cents to 71.93 cents.
Miners were slapped, particularly, Barrick Mining lost $1.06, or 1.6%, to $61.15, NovaGold Resources was down 50 cents, or 4.2%, to $11.43, while Equinox Gold shed 45 cents, or 2.5%, to $17.45.
Economically speaking, Manufacturing PMI in Canada decreased to 53 points in August from 53.50 points in July 2026.
Manufacturing PMI in Canada averaged 52.02 points from 2011 until 2026, reaching an all time high of 58.90 points in March 2022 and a record low of 33 points in April 2020.
ON BAYSTREET
The TSX Venture Exchange plunged 15.02 points, or 1.5%, to 967.49.
Eight of the 12 TSX subgroups tailed off, weighed most by materials, sliding 2.3%, gold down 2.2%, and information technology, off 2.1%.
The four gainers were led upward by energy, rumbling 1.8%, consumer staples, stronger by 1.4%, and health-care, haler 0.6%.
ON WALLSTREET
Stocks fell on Tuesday, the first day of September, as inflation worries and elevated oil prices lifted bond yields in the U.S. and abroad, raising concern about whether the Federal Reserve will tighten monetary policy later this month.
The Dow Jones Industrials dropped 206.48 points to 52,979.42.
The S&P 500 dropped 28.69 points to 7,657.45.
The NASDAQ Composite lost 160.48 points to 26,210.41.
The broader market was bogged down by declines in tech stocks. Nvidia, Advanced Micro Devices and Micron Technology were all down around 2%. Microsoft lost more than 1%, as did Google-parent Alphabet.
Global bond yields continued their march higher. The U.S. 10-year Treasury note yield scaled to levels not seen since January 2025. Japan’s 10-year yield reached its highest level since August 1996, while Germany’s benchmark yield rose to a 2011 high.
The moves come as traders weighed tensions in the Middle East following a resumption of military action between the U.S. and Iran. On Monday, a tanker passing through the Strait of Hormuz was hit by three unknown projectiles.
Additionally, President Donald Trump threatened to respond to Iran’s latest attacks on U.S. military bases in the region, telling Fox News Monday that “we are going to hit them hard.”
Prices for the 10-year Treasury were down slightly, raising yields to 4.77% from Monday’s 4.74%. Treasury prices and yields move in opposite directions.
Oil prices popped $2.35 to $88.41 U.S. a barrel.
Gold prices faded $68.00 to $4,413.50 U.S. an ounce.
