Canada's Stock Market Gives Back Gains: Here's What Spooked Investors

The TSX started Thursday on fire—up 350+ points—riding the Nvidia momentum. The chipmaker just blew past expectations with a 62% revenue surge to $57B in Q3, with AI data-centre chips pulling in $51B alone. Fourth-quarter guidance of ~$65B? Way above consensus. Looked like smooth sailing.

Then it all unraveled.

By mid-session, the benchmark S&P/TSX Composite had flipped negative, dropping 308.95 points (-1.02%) to 29,969. The damage was concentrated in two sectors:

Materials took the hardest hit (down 3.3%), with precious metals bleeding out. Silver miners Discovery Silver, First Majestic, and Pan American Silver all slid 5-6.5%. Gold names like Lundin, Novagold, and Kinross also in the red.

Tech wasn’t immune. Celestica (-5.1%) and Lightspeed Commerce (-1.7%) sold off, though the broader tech weakness was milder than materials.

On the flip side, energy and industrials held up—Altus, Gran Tierra Energy, and Enerflex in green territory.

The economic backdrop: Canada’s industrial producer prices jumped 1.5% month-over-month in October (the 5th straight monthly gain), and the broader Raw Materials Price Index climbed 1.6%. On annual basis, producer prices are up 6.0%—sticky inflation signals. Business sentiment improved slightly though; the CFIB Business Barometer ticked up to 55.5 in November from 46.7 in October.

The takeaway: Nvidia’s AI dominance is real, but it’s not a free pass. Commodity weakness and inflation concerns are keeping markets on their toes.