TORONTO, September 2, 2026, 10:49 EDT — The Toronto Stock Exchange regained 46% of its previous session’s losses after a Bank of Canada policy hold, with mining stocks posting solid gains during Wednesday trade.
- At 10:49:01 EDT, the S&P/TSX Composite gained 0.58% to reach 36,032.23.
- The increase recouped 46% of Tuesday’s 444.75-point drop.
- The Bank of Canada kept its policy rate unchanged at 2.25% and signaled increased risks of rising inflation.
Canada’s primary stock index rose 0.58% to 36,032.23 as of 10:49:01 EDT on Wednesday, recouping 46% of the 444.75-point decline from Tuesday Yahoo Finance.
The recovery varied across sectors. A proxy for the materials sector climbed 2.20%, but energy declined 0.63%.
The divergence became apparent after the Bank of Canada kept its interest rate unchanged at 2.25%. Financial stocks adjusted to the outcome, while energy stocks did not reflect the gains seen in oil prices.
TSX trades above Tuesday’s close
36,032.23 · +0.58%Source: Yahoo Finance. Values are delayed and frozen at the stated timestamp.
The index began the session up 0.5% at 36,017.59, with mining shares leading initial gains Reuters.
The central bank kept rates steady as anticipated. Unexpectedly, the statement flagged heightened inflation risks, with tariffs casting uncertainty over the economic growth outlook Bank of Canada.
Governor Tiff Macklem stated that “upside risks to our inflation forecast have increased.” He pointed to ongoing energy price pressures and limited shipments through Hormuz opening statement.
Commodity exposure did not move as one trade
Toronto-listed iShares sector ETFs, change from Tuesday’s close.
Sources: Yahoo Finance quotes for XMA, XFN and XEG. Prices are delayed snapshots on September 2, 2026.
The iShares materials fund (TSE:XMA) led the way. The financials fund (TSE:XFN) rose 1.07%, indicating the hold had minimal immediate impact on banks.
The iShares energy fund (TSE:XEG) was down 0.63% at 10:49:01 EDT, a move that runs counter to the index’s advance and challenges a straightforward oil-based rationale for the gain.
The drop on Tuesday came after two prior sessions in the red. Despite this, the index still held onto a 12.97% increase for the year to date, along with a 25.42% return over the past year as of September 1 S&P Dow Jones Indices.
The rebound repairs only part of Tuesday’s break
Price-return comparison; current figure frozen at 10:49:01 EDT.
Sources: Yahoo Finance and S&P Dow Jones Indices. Recovery percentage is calculated from a 206.50-point rise and Tuesday’s 444.75-point decline.
The policy environment remains mixed. GDP expanded at a 3.3% annual rate in the second quarter, while unemployment held at 6.4% in July.
Headline inflation remained close to 3%, mainly due to gasoline prices. Without gasoline, inflation stood at 2.2% in July, nearly matching the target.
The upcoming rate decision is set for October 28. Investors will watch to see if the current rebound, driven by materials, extends to other sectors ahead of that date.
Risks: Rising oil prices may spur inflation but not boost energy stocks. Tariffs might dampen earnings ahead of any interest rate cuts.
Currently, Toronto’s sector composition provided some stability. However, it was not enough to remove the index’s recent volatility.
