Tech and materials stocks put a clamp on Canada's benchmark index on Thursday, as investors remained cautious amid mixed signals from the U.S. and Iran over the Middle East conflict.
The TSX slumped 70.95 points to pause for lunch Thursday at 32,311.65
The Canadian dollar ducked 0.19 cents to 72.19 cents U.S.
Cogeco Communications fell $5.73, or 7.5%, to $71.06 after TD Cowen downgraded it to "hold" from "buy".
On the macroeconomic front, Statistics Canada is reports the number of employees receiving pay and benefits from their employer—measured as "payroll employment" in the Survey of Employment, Payrolls and Hours—increased by 45,600 (+0.2%) in January following a decrease of 10,600 (-0.1%) in December.
On a year-over-year basis, payroll employment was up by 33,500 (+0.2%) in January 2026.
ON BAYSTREET
The TSX Venture Exchange stumbled 14.15 points, or 1.5%, to 933.49.
Seven of the 12 TSX subgroups were higher by midday, led by energy, up 0.9%, while consumer staples hiked 0.5%, and utilities gained 0.4%.
The five laggards were weighed most by information technology, off 1%, materials, down 0.8%, and telecoms, sliding 0.4%.
ON WALLSTREET
The S&P 500 fell on Thursday, weighed by higher oil prices, as traders followed the latest developments out of the Middle East.
The Dow Jones Industrials hurtled lower 212.83 points to 46,216.66.
The much-broader index subtracted 55.32 points to 6,536.58
The NASDAQ lost 255.98 points to 21,673.84.
President Donald Trump said in a Truth Social post that Iran “better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty.” Trump also labeled Iranian negotiators as “very different” and “strange,” claiming they were “begging” the U.S. to make a deal to end the now four-week war.
This comes after Iran’s foreign minister reportedly told state media on Wednesday that top authorities in the Middle Eastern nation are reviewing an American proposal to end the war, but Tehran has no intention of having talks with the U.S.
Meanwhile, Gulf countries issued a joint statement Thursday condemning Iran’s “criminal” strikes from Iraqi territory on their energy infrastructure. They added that they are ready to defend themselves going forward.
One observer said markets “seem to be concluding that Iran’s negative public message may be a smokescreen for a more accommodating private posture,” he wrote in a note. “We’re not so sure, and the ambiguity can’t last much longer amid Trump’s five-day deadline for talks.”
Prices for the 10-year Treasury dropped, raising yields to 4.38% from Wednesday’s 4.33%. Treasury prices and yields move in opposite directions.
Oil prices gained $4.23 to $94.55 U.S. a barrel.
Gold prices tumbled $119.60 to $4,432.70 U.S. an ounce.
