TORONTO – Canada’s main stock index finished in negative territory on Wednesday, weighed down by the financials sector, while U.S. stock markets edged lower as some investors weighed seasonality risks.
Andrew Buntain, a vice-president and portfolio manager at Fiduciary Trust Canada, said declines on Canadian equity markets came as some investors opted to take profits.
“The market watchers are really balancing their excitement for the fact that the Canadian market has come so far, so quickly, and for the trends that may drive it higher … they’re balancing that with a historical awareness that we’re coming into the autumn months,” he said.
Buntain noted that the fall season has been historically challenging for investors in the U.S. and Canada and likely accounted for some of the day’s weakness.
He added that the TSX has performed well on a year-to-date basis.
“It’s been an almost uninterrupted massive move higher since the April 7 bottom. I think there’s a small dip in August … and a lot of that has to do with metals, precious metals in particular,” he said.
During Wednesday’s trading session, Buntain added that investors welcomed strength in oil and base metals stocks on the TSX.
“Oil and base metals haven’t been nearly as good performers as the precious metals so far, so maybe that leads to a broadening out of investor sentiment for the materials complex in particular and energy as well,” he said.
Energy was the top-performing sector on the TSX during the day.
The S&P/TSX composite index was down 58.68 points at 29,756.95.
In New York, the Dow Jones industrial average was down 171.50 points at 46,121.28. The S&P 500 index was down 18.95 points at 6,637.97, while the Nasdaq composite was down 75.62 points at 22,497.86.
Meanwhile, U.S. stock indexes drifted lower on Wednesday as Wall Street took a pause from what seemed like a relentless rally.
It’s a departure from a blistering run for the U.S. stock market since it hit a low in April, fuelled by hopes that U.S. President Donald Trump’s tariffs won’t derail global trade and that the U.S. Federal Reserve will cut interest rates several times to boost the nation’s economy.
The big rally, though, has raised concerns that stock prices have shot too high and become too expensive, particularly if the Fed does not deliver as many cuts to rates as traders expect.
Amid concerns among some investors that stock prices have risen too high, Buntain said he sees the issue as more related to U.S. markets compared with the TSX.
“I think you’d find a little more weakness potentially with valuations stretched on that side of the border and economic data maybe pointing to some weaker consumer demand,” he said.
“Here in Canada, we still have a lot of enthusiasm about the commodity complex, the precious metals in particular, as part of the material sector has been a standout performer.”
The Canadian dollar traded for 71.98 cents US compared with 72.30 cents US on Tuesday.
The November crude oil contract was up US$1.58 at US$64.99 per barrel. The December gold contract was down US$47.60 at US$3,768.10 an ounce.
This report by The Canadian Press was first published Sept. 24, 2025.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
