TSX Tumbles After Firm Start As Tech Stocks Fall After Microsoft's Weak Update

(RTTNews) - After a sharp move up north, the Canadian benchmark S&P/TSX Composite Index fell into negative territory Thursday morning, as technology and materials stocks plunged on selling pressure.

Tech stocks fell, tracking a sell-off in U.S. technology stocks after Microsoft reported slowing cloud computing growth in its second quarter and provided disappointing third quarter operating margin guidance.

Materials stocks dropped as prices of precious metals retreated after a sharp upmove.

The S&P/TSX Composite Index, which rose to 33,427.86 earlier in the session, plunged to 32,698.14 before recovering to 32,890.82, but was still notably lower, losing 285.25 points or 0.86%.

The Information Technology Capped Index dropped 5.35% Celestica, the biggest loser in the index, tanked more than 15%. Dye & Durham fell 10%, Sylogist declined 9.5% and Coveo Solutions lost 7.4%.

Bitfarms, Lightspeed Commerce, Descartes Systems, Open Text Corporation, Constellation Software, Computer Modelling Group, Firan Technology Group, Blackberry, Tecys and Kinaxis lost 2.5 to 6%.

In the materials sector, Vizsla Silver Corp dropped nearly 16%. Lithium Americas Corp lost 11% and G Mining Ventures went down by 10%. Orla Mining, Aya Gold & Silver, Perpetua Resources Corp., Discovery Silver Corp., Equinox Gold Corp., Iamgold, Silvercorp Metals, Aris Gold Corporation and B2Gold Corp were among the other big losers in the sector.

Healthcare stocks Sienna Senior Living and Curaleaf Holdings lost 1.2% and 5%, respectively. Bausch Health Companies drifted down nearly 1%.

Energy stocks found good support. Athabasca Oil Corp., Prairiesky Realty, Baytex Energy, Tamarack Valley Energy, Canadian Natural Resources, International Petroleum Corp., Freehold Royalties and Enerflex gained 1.3 to 3%.

Data from Statistics Canada showed Canada's trade deficit widened to C$2.20 billion in November 2025 from a C$0.395 billion deficit in October. Exports fell 2.8% month on month to C$63.94 billion, while imports edged down 0.1% to C$66.14 billion.