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Today: March 19, 2025
Today: March 19, 2025

TSX falls to 4-month low as economic growth worries hit tech stocks

The facade of the original Toronto Stock Exchange building is seen in Toronto
March 10, 2025
Fergal Smith - Reuters

By Fergal Smith

(Reuters) - Canada's main stock index fell to a four-month low on Monday, including declines for technology and metal mining shares, as investors globally grew more worried that the unpredictability of U.S. trade policy could derail economic growth.

The Toronto Stock Exchange's S&P/TSX composite index ended down 378.05 points, or 1.5%, at 24,380.71, its lowest closing level since November 4, the day before the election of U.S. President Donald Trump.

U.S. stocks posted even steeper declines.

Trump on Sunday declined to rule out that his tariffs on Canada, Mexico and China may cause a U.S. recession. A Reuters poll found that recession risks were mounting for the U.S., Mexico and Canada. 

"The market selling off tech is a direct indication that future growth is being called into question," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. "Technology is where you see people invest when they're bullish on growth potential for the future."

The Toronto market's technology sector fell 3.6%, with shares of e-commerce company Shopify Inc down 6.9%.

The materials group, which includes fertilizer and metal mining shares, lost 2.6% as gold and copper prices fell.

Heavily weighted financials were down 1.6% and industrials ended 2% lower. The utilities sector was the only major one to end higher, advancing 0.4% as bond yields declined.

The Bank of Canada is expected on Wednesday to cut its benchmark interest rate by a further 25 basis points to support the economy, after lowering the rate by two percentage points since June to its current setting of 3%.

Whitecap Resources Inc shares fell 14.5% after the oil producer agreed to merge with Veren Inc in an all-stock deal valued at C$15 billion ($10.43 billion) including debt. Shares of Veren were up 16.0%.

(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Leroy Leo and Sandra Maler)

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