TSX set for second weekly decline as gold slump, tech weakness weigh

What happened

Canada's main stock index fell 1.57% to 35,673.99 points, hitting a one-week low and heading for a second straight weekly loss. Eight of 10 sectors declined, with materials down 4.9% as gold prices dropped 2% and technology fell 2.6%.

Confirmed

Global impact / market context

Mining companies earn less when gold prices fall, while tech firms face pressure from rising artificial intelligence costs and heavy cash spending at Amazon and Intel. Because these sectors are part of the index, their losses pull down diversified portfolios and can reduce investor appetite for Canadian equities.

Analyst inference

Gold's slump reflects expectations of further US interest rate hikes, which makes non-yielding gold less attractive and strengthens pressure on miners. Canada's economy stalled in August for a second month, with retail, manufacturing and construction gains offset by weaker wholesale trade and public administration activity.

Analyst inference

What to watch

1. Watch whether the materials sector, down 4.9% to a nearly two-month low, recovers if gold prices stabilize after falling 2% to their lowest level since November 2025. Confirmed
2. Monitor Amazon and Intel cash burn commentary, since continued spending warnings could keep technology stocks under pressure and extend the index's declines. Analyst inference
3. Track upcoming Canadian economic data to see whether August's stall persists, which could shape expectations for interest rates and financial sector performance. Proposed

Evidence

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