Canadian Stocks Tumble Amid Profit Taking Following Recent Gains

(RTTNews) - Canadian stocks slumped on Thursday as investors resorted to profit taking from the gains made from yesterday's surge in stocks as well as from previous two sessions despite the U.S. government reopening boosting market sentiment.

After opening below yesterday's close, the benchmark S&P/TSX Composite Index traded firmly negative throughout the session to finally close at 30,253.64, down by 573.94 points (or 1.86%).

Two of the 11 sectors posted gains today, with communication services sector leading the pack.

Canadian stocks surged on Monday followed by modest gains on Tuesday and again leapt yesterday, prompting investors to opt for booking profits.

In the U.S., Monday's Senate-passed short-term funding bill to run the government was approved by the House yesterday and later signed by U.S. President Donald Trump, thereby ending the longest shutdown in the history of U.S., which started on October 1.

These political developments in the U.S. boosted market sentiments globally. However, wary investors are taking only measured steps as the efforts to end the shutdown has also increased the national debt.

Markets also await critical economic data from the U.S. which could alter the Fed's decision on interest rates. The lack of official data had put markets and the U.S. Federal Reserve in a blind spot about the actual status of the U.S. economy, compelling them to trust private data sources.

Recent U.S. private labor market data revealed a decline in new hiring and increase in joblessness, supporting calls for another rate cut.

In Canada, the Bank of Canada lowered its benchmark overnight rate by 25 basis points to 2.25% on October 29.

Today, the summary of deliberations from its decision two weeks ago revealed that though the cut was warranted due to a weakening economy, policymakers had divergent views on the timing of the cut.

Today, the Royal Bank of Canada has projected that the U.S. Fed would gradually lower its target range to 3.25%-3.5% by mid-2026 while the BoC would maintain its overnight rate at 2.25% through the end of 2026.

In his continuing efforts to boost the domestic economy impacted by Trump's tariffs, Canadian Prime Minister Mark Carney is set to announce a slew of nation-building projects that will be sent to the newly created Major Projects Office in efforts to fast-track infrastructure approvals.

In August, Carney's government launched the MPO to speed up approvals for major infrastructure projects.

On the business front, Hydro One Limited reported third quarter net income of C$421 million compared to C$371 million of the previous year. Earnings Per Share were $0.70 versus $0.62 last year.

Engineering and construction firm Atkinsrealis Group Inc reported total revenues of $2.8 billion for the third fiscal quarter 2025, (a 15% increase compared to the same period last year). The company's net income attributable to shareholders jumped 41% to $147 million while diluted Earnings Per Share rose 49% to $0.88.

London and Toronto based gold miner Endeavour Mining reported pre-tax profit for the fiscal quarter ending September 30 of $311 million compared to $49 million loss for the same period last year. EBITDA rose to $472 million from $128 million and reported $0.66 in EPS.

Major sectors that gained in today's trading were Communication Services (0.72%) and Consumer Discretionary (0.43%).

Among the individual stocks, BCE Inc (1.60%), Quebecor Inc (1.07%), Linamar Corp (5.27%), and Restaurant Brands International Inc (1.94%) were the prominent gainers.

Major sectors that lost in today's trading were Financials (1.59%), Materials (2.10%), Healthcare (3.60%), and IT (5.64%).

Among the individual stocks, Brookfield Corporation (6.53%), Brookfield Asset Management Ltd (5.05%), Sprott Inc (3.76%), and Curaleaf Holdings Inc (7.44%) were the notable losers.

Atkinsrealis Group Inc (4.02%) and Baytex Energy Corp (3.53%) were among the prime market-moving stocks today.