TSX Closer: Index Tumbles to 2-1/2-Month Low as Base Metals, Financials and Industrials Drag

04:35 PM EDT, 10/07/2026 (MT Newswires) -- The S&P/TSX Composite Index dropped to the lowest level since late-July on Wednesday, posting a steep one-day decline as losses in base metals, financials and industrials dragged it lower. The index closed down 607.65 points, or 1.7%, at 35,041.86 with most sectors in the red. Base metals led decliners, down 2.6%, followed by shares in the financial and industrial sectors that closed down 2.3% and 1.7%, respectively. Shares in healthcare and telecom closed up 1.0% and 0.6%, respectively. In commodities, West Texas Intermediate (WTI) and Brent crude were mixed as the International Energy Agency moved to speed up releases from emergency oil reserves, easing some supply concerns. Ongoing Middle East tensions, including renewed fighting involving Yemen's Houthis, provided some support to prices as risks to energy infrastructure and regional shipping routes remained elevated. November WTI crude oil contract settled down $1.16, or 1.3%, at $88.28 per barrel, while December Brent oil was last seen up $0.41, or 0.4%, at $100.99 per barrel. December Comex gold futures dropped 1.4%, or $57.40, to $4,129.70 per ounce at last look. In currencies, the US dollar edged higher 0.4% against the Canadian dollar, with USD/CAD at 1.4261 at last look. In fixed-income markets, Canada sold CA$5.5 billion of two-year bonds at an average yield of 3.321%, according to Bank of Canada data. Competitive bids totaled CA$14.6 billion, or 2.66 times the amount offered. In a research published on Wednesday, Canadian Federation of Independent Business (CFIB) said the tax burden is weighing on the growth of Canadian small firms, with only 7% of firms planning to significantly expand or diversify over the next 12 months. Cost and economic pressures are limiting growth for 31% of businesses, with 59% of those citing taxes as the biggest barrier to expansion. CFIB has called for tax relief in the upcoming federal budget, including a cut in the small-business tax rate to 6% from 9%. Another report, released by National Bank of Canada, found that Canadian households are increasingly opting for shorter-term and variable-rate mortgages, leaving them more exposed to interest-rate changes as markets price in tighter monetary policy. Meanwhile Canadian homebuyers are willing to compromise to achieve homeownership amid ongoing affordability pressures, according to the RE/MAX Fall 2026 Canadian Housing Market Outlook. Some 65% of respondents would make at least one compromise to afford a larger or more suitable home, while 63% would consider relocating, wrote RE/MAX.