TSX declines due to falling banking and mining stocks

The S&P/TSX Composite Index dropped by over 1.7%, closing at 36,620 points, as a rebound in oil prices reignited inflation concerns. After a tanker was attacked in the Strait of Hormuz, highlighting supply risks, crude oil prices surged. Since the outbreak of the US-Iran war, energy-driven inflation worries have consistently weighed on major bank stocks, increasing the risk that interest rates will remain high for a longer period. Royal Bank of Canada fell 1.5%, TD Bank declined 2.3%, and Bank of Montreal dropped 2.9%. Meanwhile, falling gold prices dragged down heavyweight mining stocks—Agnico Eagle slid 6%, Barrick Gold fell 4.6%, and WPM dropped 5.7%. Tech stocks also plunged, as US chipmakers and hyperscale cloud service providers experienced heavy sell-offs. Celestica tumbled 6.8%, and Shopify fell 5.7%. Additionally, Cameco plummeted 7.7% after posting a net loss in Q3 2026, despite revenue growth. Imperial Oil rose 5.4% after reporting better-than-expected earnings, while Canadian National Railway, despite strong results, still fell 0.5%. The TSX slipped 0.7% this week, but is up 1.5% for the month.