TSX falls to three-month low as Toronto stocks slide

Toronto’s stock market came under sharp pressure on Thursday, March 19, 2026, as the S&P/TSX Composite Index fell to its lowest level in three months, with rising tensions in the Middle East pushing investors away from risk-sensitive assets. By 10:28 a.m. ET, the index was down 2.1 percent at 31,650.70.

The heaviest drag came from the materials sector, which includes mining companies and was down more than 7 percent, putting it on track for its worst one-day fall since January 30. Silver miners dropped sharply as silver prices fell about 8 percent, while gold slid 5 percent and copper touched a three-month low, deepening losses across the broader Canadian market.

The sell-off was driven by fears of a wider energy shock after attacks on energy infrastructure in the Middle East sent Brent crude above $119 a barrel. That move intensified concerns about inflation and reinforced investor worries that interest rates could stay higher for longer, a backdrop that is typically negative for equities.

Energy stocks were the main exception. The TSX energy sector rose about 1.8 percent, extending its winning streak to seven straight sessions as investors rotated toward oil-linked names. Still, those gains were not enough to offset the steep declines in mining and materials shares that dragged the broader index lower.

The downturn also followed a weak session on Wednesday, when the TSX fell 1.87 percent after the Bank of Canada kept its policy rate unchanged at 2.25 percent while signaling it could raise rates if higher energy prices begin feeding into more persistent inflation. That leaves Canadian markets facing a difficult combination of geopolitical stress and a firmer central-bank tone.

For investors, the drop is more than just a rough morning on Bay Street. It highlights how sensitive Canadian equities remain to swings in oil, metals and inflation expectations. If the energy crisis deepens or lasts longer than expected, volatility could remain elevated in Toronto even as oil producers benefit from stronger crude prices.