TSX Down Nearly 1%, Headed For Weak Close

(RTTNews) - After opening marginally up and advancing further subsequently, the Canadian market turned weak on Friday following Fed Chair Kevin Warsh's hawkish tone at the Jackson Hole Economic Symposium signaled some tightening measures by the U.S. central bank this year. Tariff concerns and worries about growth due to the ongoing conflict hurt as well.

The marginal early upmove was thanks to fairly encouraging Canadian GDP data.

Warsh's tone was hawkish as he noted that inflation remains elevated and there might be a need to tighten policy if inflation does not show signs of easing.

Following Warsh's remarks, the chances the Fed will raise interest rates by a quarter point next month have jumped to 59.5% from just 35.4% yesterday, according to CME Group's FedWatch Tool.

The benchmark S&P/TSX Composite Index, which advanced to 36,963.11 in early trades, was down 352.94 points or 0.96% at 36,481.31 a little while ago.

Materials and energy stocks tumbled on weak commodity prices. The Materials Capped Index shed 3.3%, while the Energy Capped Index declined by about 1.1%.

NexGen Energy, Torex Gold Resources, First Majestic Silver, BlackBerry, Fortuna Silver Mines, Eldorado Gold, Cameco, OceanaGold, Iamgold, SSR Mining, Kinross, Celestica, Lundin Gold, Pan American Silver, Agnico Eagle Mines, Aecon, Centerra Gold and Dundee Precious Metals lost 4%-7%.

Laurentian Bank of Canada reported third-quarter earnings per share of $0.51, compared with $0.78 in the year-ago quarter. Earnings per share were expected to come in at $0.64 for the latest quarter. The stock was roughly flat a few minutes ago.

Pason Systems climbed 5%. Constellation Software, Secure Energy Services and Thomson Reuters gained 2%-2.5%.

Canada Goose Holdings, Altus, Colliers International Group, Kinaxis, Nutrien, Great West Lifecon, First Service, Birchcliff Energy and Real Matters moved up 1%-2%.

Data from Statistics Canada showed the Gross Domestic Product in Canada expanded 0.8% in the second quarter of 2026 over the previous quarter. GDP rose 0.3% in June.

GDP growth increased to 3.3% (annualized) in the second quarter of 2026 from 0.3% in the first quarter.