TSX Closer: The Index Drops 1.2% as Tech and Base Metals Slide

04:22 PM EDT, 09/01/2026 (MT Newswires) -- The S&P/TSX Composite Index closed sharply lower on Tuesday as declines in metals and technology stocks outweighed gains in energy, while investors weighed surging oil prices amid renewed US-Iran tensions and mixed signals from the Canadian economy. The index closed down 444.75 points, or 1.2%, to 35,825.73, with most sectors in red. Information Technology led decliners, down 3.0%, followed by Base Metals and Industrials, down 2.6% and 2.5%, respectively. Energy was up 3.1%. The Battery Metals Index, which includes companies listed both on the TSX and TSX Venture Exchange, dropped 1.6%. In commodities, West Texas Intermediate (WTI) and Brent crude surged on Tuesday as renewed fighting between the US and Iran heightened concerns over continuing disruptions to Middle East oil supplies. Fresh US strikes on Iranian targets and threats from Tehran to restrict Gulf oil exports worsened worries about the security of shipments through the Strait of Hormuz, pushing crude prices to their highest levels in about a week. October WTI crude oil contract settled up $4.46, or 5.2%, at $90.22 per barrel, while November Brent oil was last seen up $4.59, or 5.1%, at $95.08 per barrel. Meanwhile, December Comex gold futures shed 2.4%, or $106.90, to $4,374.60 per ounce at last look. In currencies, the US dollar edged higher 0.3% against the Canadian dollar, with USD/CAD at 1.3896 at last look. On the economic front, the Canadian manufacturing sector continued to expand in August, with the S&P Global Canada Manufacturing PMI easing to 53.0 from 53.5 but remaining above the 50.0 mark that shows the sector is expanding for a fifth-straight month, according to S&P Global on Tuesday. Additionally, Canadian domestic demand remained resilient in second-quarter gross domestic product, with final domestic demand up 1.5% annually, broadly sustaining the steady growth trend seen since mid-2025, according to BMO Capital Markets in a note. Consumer spending has continued to grow at just under 2%, wrote the bank. In corporate news, Bombardier (BBD-B.TO) said Tuesday it agreed to acquire the assets of Mitsubishi Heavy Industries' MHI Canada Aerospace unit in Mississauga, Ontario, for an undisclosed price. The acquisition will add MHI Canada Aerospace's aerostructure manufacturing capabilities and about 750 employees to Bombardier's operations, the Montreal-based business jet maker said. As well, Loblaw (L.TO) said it plans to invest C$1.2 billion in Canada for the remainder of this year, with spending to be used on opening of new stores and pharmacies, renovating current locations, and developing new store formats. The company expects to open 75 new locations in 2026, up from 70 planned at the start of the year, the grocer said Tuesday.