Aug 19, 2025 (Baystreet.ca via COMTEX) --
Canada's main index edged down on Tuesday, despite gains in industrials stocks, as cooler-than-expected domestic inflation data kept the door open for the Bank of Canada to cut interest rates.
The TSX Composite Index faded 7.03 points below breakeven as noon EDT approached on Tuesday at 27,915.82.
The Canadian dollar slid 0.29 cents to 72.16 cents U.S.
Industrials powered the market toward breakeven, with Canadian Pacific Kansas City accelerating $2.71, or 2.7%, to $104.31, while rival Canadian National Railways gained $2.07, or 1.6%, to $130.74.
Chief among losing subgroups was gold, weighed down most by Aya Gold & Silver, reversing 80 cents, or 6.5%, to $11.58, while shares in Lundin Gold tanked $3.45, or 4.3%, to $7.01.
In macroeconomic news, July's consumer price index rose 1.7% year over year, down from a 1.9% increase in June. On a seasonally adjusted monthly basis, the CPI rose 0.1% in July.
Economists polled by Reuters expected CPI to show a moderation in the annual inflation rate to 1.8% last month from 1.9% in June.
A Reuters poll released on Tuesday found the index is set to extend its record-setting run this year and next as lower borrowing costs and potential greater clarity on U.S. tariffs offset expected pressure on corporate profits.
ON BAYSTREET
The TSX Venture Exchange burrowed 12.53 points, or 1.6%, to pause for lunch Tuesday at 776.55.
Six of the 12 TSX subgroups were higher midday, with industrials rising 1.2%, real-estate stronger 1.1%, and consumer discretionary stocks up 0.8%.
The five laggards were gold, dulling in price 1.8%, while health-care sagged 1.4%, and materials lost 1.3%.
Utilites were unchanged by noon EDT.
ON WALLSTREET
The Dow Jones Industrial Average rose to a record high Tuesday thanks to strong gains in Home Depot, while the Nasdaq Composite struggled as Nvidia led the chip sector lower.
The 30-stock average came off its highs of the morning, but remained positive 71.31 points by noon to 44,983.13.
The S&P 500 index drifted lower 20.32 points to 6,428.83.
The NASDAQ wilted 221.14 points to 21,408.64.
Shares of several big-name chipmakers declined during the session, putting pressure on the NASDAQ and S&P 500. Nvidia shares dropped 2%, while Advanced Micro Devices shed more than 4% and Broadcom slipped more than 2%. Other major tech-related names such as Tesla, Meta Platforms and Netflix were also under pressure.
Investors have awaited these reports as they search for clues on how the consumer is faring amid a mixed inflation outlook and evolving U.S. trade policy.
Wall Street is also looking for clues from Powell as to what will happen at the central bank's remaining policy meetings this year. Central bank officials from around the globe will convene this week in Jackson Hole, Wyoming for the Fed's annual economic symposium.
The fed funds futures market is indicating an 83% chance for a quarter-point rate cut at the Fed's next policy meeting in September.
Prices for 10-year Treasury gained ground Tuesday, lowering yields to 4.31% from Monday's 4.34%. Treasury prices and yields move in opposite directions.
Oil prices ditched 71 cents to $62.71 U.S. a barrel.
Gold prices sank $9.60 cents at $3,368.40 U.S. an ounce.
COMTEX_468159408/2559/2025-08-19T11:57:54
