S&P/TSX composite slides on lower gold prices as U.S. markets fare better on earnings

TORONTO – Canada’s main stock index finished more than 500 points lower Tuesday, weighed down by losses in the basic materials sector, while U.S. stock markets posted mixed results.

The S&P/TSX composite index was down 527.62 points at 29,888.82.

Anish Chopra, managing director with Portfolio Management Corp., said the decline on the TSX was “driven by commodity prices” as gold and other metals moved lower during the day. The December gold contract was down US$250.30 at US$4,109.10 an ounce, paring some gains from a recent run-up.

“If you look at gold in particular, it’s had quite a strong run in the last few months. But I think part of that strong run, that strong upward price momentum is being undone today,” he said.

He noted that gold is a large part of the TSX compared with other stock indexes.

“The movement in the gold price is going to have a bigger impact on the TSX than the U.S. market indices and it’s and it’s certainly shown to have that when you look at the performance of the TSX composite over a number of months,” he said.

“The index has performed quite well and gold has performed quite well at the same time, but nothing goes up in a straight line forever.”

As Canada’s main index was weighed down by the price of precious metals, U.S. indexes fared better, with U.S. corporations reporting their latest earnings

In New York, the Dow Jones industrial average was up 218.16 points at 46,924.74. The S&P 500 index was up 0.22 points at 6,735.35, while the Nasdaq composite was down 36.88 points at 22,953.67.

General Motors rallied 14.9 per cent after reporting stronger quarterly results than analysts expected, while also raising its forecasts for some full-year financial targets.

Warner Bros. Discovery leaped 11 per cent after the company said it’s now considering other options besides its previously announced split of Discovery Global from Warner Bros., ones that could be more profitable for shareholders.

The pressure is on companies to show that their profits are growing following a torrid rally of 35 per cent for the S&P 500 from a low in April. It’s one way they can justify their high stock prices amid criticism that they’re too expensive.

Corporate earnings reports also have gained importance because they provide details on the strength of the U.S. economy when the U.S. government’s shutdown has delayed important economic updates.

Chopra said U.S. earnings have been “solid” so far, with more names still to come.

Tuesday’s trading day also came amid the release of some key economic data in Canada.

Annual inflation accelerated to 2.4 per cent last month, Statistics Canada said. That’s a jump of half a percentage point from 1.9 per cent in August and a tick higher than economists’ expectations.

Chopra noted the data will be a consideration for the Bank of Canada ahead of its rate decision next week.

The Canadian dollar traded for 71.32 cents US compared with 71.25 cents US on Monday.

The December crude oil contract was up 22 cents US at US$57.24 per barrel.

This report by The Canadian Press was first published Oct. 21, 2025.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)