Canadian Stocks Trip As Traders Analyze U.S. Inflation Data

(RTTNews) - After three successive sessions of positive trading, Canadian stocks turned weak on Tuesday as investors assessed the U.S. inflation data.

In addition, markets weighed the impact of increasing geopolitical tensions on the economy compelling traders to take measured steps.

After opening higher than yesterday's close, the benchmark S&P/TSX Composite Index remained volatile through the session before settling just shy of yesterday's record peak at 32,870.36, down by 4.34 points (or 0.01%).

Four of the 11 sectors posted gains today with Energy sector leading the pack.

In the U.S., Automatic Data Processing revealed that private employers in the U.S. added an average of 11,750 jobs per week for the four weeks ending December 20, 2025, up from an average gain of 11,000 during the prior period.

Data from the Labor Department revealed that month-over-month core consumer prices in the US, (which exclude food and energy) rose by 0.2% from the previous month for December 2025.

The annual core consumer price inflation rate, stood at 2.6% in December 2025,

Month-over-month consumer prices increased by 0.3% in December in line with market estimates.

The annual inflation rate in the US remained at 2.7% in December 2025, again in line with market expectations.

Consumer Price Index (CPI) decreased to 324.05 points in December from 324.12 points in November 2025.

Data released by Statistics Canada today revealed that the month-over-month building permits in Canada fell by 13.1% to C$12.0 billion in November 2025. This is the first decline after two months of growth which is well-below market expectations of a 6.5% drop.

Expectations of a rate cut by the central banks of both Canada and the U.S. this month-end remains muted.

Major sectors that gained in today's trading were Energy (2.60%), Materials (0.93%), Healthcare (0.60%), and Utilities (0.44%).

Among the individual stocks, Enerflex Ltd (6.93%), Cenovus Energy Inc (5.93%), International Petroleum Corp (5.34%), Ssr Mining Inc (4.15%), and Taseko Mines Ltd (3.91%) were the prominent gainers.

Major sectors that lost in today's trading were Financials (0.74%), Industrials (0.92%), Consumer Staples (1.12%), and Communication Services (1.60%).

Among the individual stocks, Quebecor Inc (3.74%), Rogers Communications Inc (1.75%), The North West Company Inc were the notable losers.