Finance

Canadian Stocks Dip Amid Slump In Materials Sector, Concerns Of Fed Rate Hike

Source · Nasdaq

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November 10, 2026 — 04:34 pm EST

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(RTTNews) - Partially shedding the gains from the two previous sessions, Canadian stocks edged lower on Tuesday, as a steep decline in the materials sector due to a tumble in gold prices weighed on the market. In addition, today's U.S. inflation data reinforced concerns of a rate hike by the U.S. Federal Reserve.

After opening much lower than yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly negative throughout the session before settling at 36,170.45, down by 275.81 points (or 0.76%).

Out of the 11 major market sectors, four sectors posted gains today, with the energy sector leading the pack.

In the U.S., data released by the Bureau of Labor Statistics revealed that the Consumer Price Index for October increased 0.4% from the previous month. This was higher than analysts' expectations of 0.3% but below September's 0.6% gain.

In addition, core inflation (that excludes volatile food and energy prices) increased 0.3%, higher than economists' expectations of 0.2%.

Of note, both reports were not supplemented with annual inflation numbers. Due to the government shutdown in 2025, the BLS could not publish October 2025 data. Hence, a comparison with 2026 data could not be made.

Contrary to the recent reports showing an increase in energy costs, in October, the increase in housing costs and food costs were the primary drivers of October inflation.

The data added weight to theories suggesting inflation as a major factor in flipping Republican voters to support Democrats in the recently concluded U.S. mid-term elections.

Last Friday, the BLS jobs report showed an increase of 165,000 jobs in October, following an upwardly revised 60,000 increase in September, and well above market forecasts of 65,000. The unemployment rate eased to 4.1% in October, down from 4.2% in September.

Expectations of a rate hike at the upcoming December meeting of the Fed have increased. Senior Fed officials have also expressed hawkish remarks.

The bets on a quarter-point rate hike by the Fed has increased to 90.50% with some even betting on a 9.50% chance for a half-point raise, according to the CME Group's FedWatch Tool.

U.S. President Donald Trump indicated a restrained approach in dealing with Iran and admitted to seeing a positive momentum on efforts to resolve the crisis through negotiations.

For now, while Qatar's efforts to seek a diplomatic solution continues, Trump has decided to enforce the economic and naval blockade against Iran but pause on any military confrontation.

Today, the Secretary of Iran's Supreme National Security Council Major General Mohsen Rezaei warned against "deceptive statements" by U.S. officials. Rezaei denied any meetings between officials of the two countries.

Sounding tough, Rezaei observed that after presenting its seven conditions to the U.S., Iran is waiting for its response. Further, he added that all U.S. claims about ongoing negotiations with Iran and a meeting in Qatar are lies.

Rezaei speculated that the U.S. made such claims on negotiations to bring down oil prices and ease the economic pressure in the U.S.

A section of media reported about a meeting between Rezaei and U.S. Vice President JD Vance. Iran's Foreign Minister Abbas Araghchi rejected the reports stating there were no plans for such talks.

On the economic data front, it was an uneventful day for Canada with no significant data releases today.

Last month, the Bank of Canada raised its policy interest rate by 25-basis points to 2.50% to combat the risk of inflation due to high oil prices.

The Summary of Deliberations today revealed that the central bank's governing council thinks it might need to raise interest rates further. However, the council observed that it is proceeding carefully.

Recently, the BoC raised its outlook for the annual inflation rate to hit 3.50% at the end of 2026 and remain above 3.00% for much of 2027.

Major sectors that gained in today's trading were Energy (1.07%), Utilities (0.48%), Communication Services (0.23%), and Financials (0.04%).

Among the individual stocks, Paramount Resources Ltd (3.85%), International Petroleum Corporation (2.97%), Kelt Exploration Ltd (2.74%), Tourmaline Oil Corp (2.57%), and AltaGas Ltd (2.68%) were the prominent gainers.

Major sectors that lost in today's trading were IT (0.26%), Healthcare (0.33%), Consumer Staples (0.46%), Real Estate (0.65%), Consumer Discretionary (0.84%), and Materials (3.90%).

Among the individual stocks, Novagold Res Inc (8.96%), Americas Gold and Silver Corporation (8.58%), Perpetua Resources Corp (8.01%), Dpm Metals Inc (6.80%), Aritzia Inc (3.10%), and Allied Properties Real Estate Inv Trust (5.10%) were the notable losers.

Trisura Group Ltd (4.82%) and Torex Gold Resources Inc (3.27%) were among the prime market-moving stocks today.

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