Canada’s main stock index came under pressure on Thursday, dragged down by tech shares, as investors took a breather after a recent record rally.
Toronto’s S&P/TSX composite index dropped 0.6% to 29,582.25 points by 9:46 a.m. ET, its sharpest drop in almost two months.
Wall Street peers have also pulled back from record highs, with U.S. Federal Reserve Chair Jerome Powell noting earlier this week that stock prices appeared stretched.
However, the TSX index looked set to end its fifth-consecutive month in the green and is up around 20% this year.
“The TSX is pretty close to an all-time high…it had an interday breakthrough of over 30,000 which is part of the highest we’ve ever had and so it has kind of retreated back a bit,” said Jay Bala, CEO and senior portfolio manager at AIP Asset Management.
Technology stocks fell 4.3% as Constellation Software dropped 8.2% after the resignation of its president, Mark Leonard. Heavyweights Shopify and Celestica lost 4% and 3.1%, respectively.
Meanwhile, BlackBerry added 6.8% after the company raised its fiscal 2026 revenue forecast on the back of strong demand for its cybersecurity software.
Material and gold mining stocks posted gains tracking bullion prices. Wesdome Gold Kinross Gold and Endeavour Mining were up between 2% and 3.7%.
Among other stocks, Lithium Americas rose 8%, having jumped 100% in the previous session, after Reuters reported that the Trump administration was seeking up to a 10% stake in the company.
Air Canada dipped 3.2%, after the company said it expected a hit of C$375 million ($269.82 million) to its operating income following a four-day strike by its flight attendants in August.
Investors will closely monitor Friday’s domestic GDP data, along with U.S. Personal Consumption Expenditures index, for clues on further easing of interest rates.
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