In a significant downturn, Canada’s main stock index, the S&P/TSX composite index, experienced a sharp decline, plunging more than 500 points during late-morning trading sessions. This drop can be attributed to substantial losses particularly within the base metal and energy sectors. The current index stands at 32,039.16, reflecting a decrease of 532.39 points.

Meanwhile, U.S. stock markets mirrored this trend, with major indices also reporting losses. The Dow Jones Industrial Average faced a decline of 516.81 points and is currently at 48,984.49. Additionally, the S&P 500 index fell by 77.52 points, now resting at 6,805.20. The technology-heavy Nasdaq composite also took a hit, decreasing by 313.14 points to 22,591.44.

The fluctuations in the stock markets have had a noticeable impact on the Canadian dollar, which traded at 73.06 cents US, a slight decrease from 73.16 cents US recorded on the previous day, Wednesday. This decline in currency value often highlights investor anxiety and market volatility, which are crucial indicators of economic health.

Commodity prices have also shown signs of weakening amid these market changes. Specifically, the March crude oil contract dropped by US$2.01, bringing the price down to US$63.13 per barrel. Furthermore, the April gold contract saw a more dramatic decline, plummeting by US$99.30 to US$4,851.50 an ounce. These commodity losses further illustrate the challenges facing the markets as investors become more cautious in the current economic climate.

This downturn in markets raises concerns about the overall economic landscape, as both Canadian and U.S. stocks face increasing pressure from various sectors. Analysts will be closely monitoring these trends to gauge potential long-term impacts, especially in the context of international economic conditions and commodity prices.

This report was initially published on February 5, 2026.