Canada's benchmark S&P/TSX Composite Index plunged 3.4% on March 3, 2026—the steepest single-day drop since early 2024—as a sharp decline in gold prices and rising geopolitical tensions fueled investor panic. The sell-off hit mining and financial sectors hardest, with key ETFs and commodity-linked equities under heavy pressure.
- S&P/TSX Composite dropped 3.4% on March 3, 2026—the largest daily decline since early 2024
- Gold futures (CL=F) fell 6.2%, triggering an 8.1% drop in the GDX ETF
- XIU.TO declined 3.7%, with the materials sector losing 5.1% in value
- U.S. tariffs on Canadian aluminum and steel imports triggered market panic
- Canadian dollar weakened to $0.7260, its lowest since November 2025
- Intraday volatility on the TSX rose 22%, with $1.3 billion pulled from equity funds
Canadian equities plunged on March 3, 2026, as the S&P/TSX Composite Index fell 3.4%—its worst daily performance since January 2024—dragged down by a broad-based sell-off in gold and heightened concerns over new cross-border tariffs. The decline coincided with a 6.2% drop in gold futures (CL=F), which triggered a cascade of losses in precious metal miners. The gold sector, represented by the GDX ETF, shed 8.1% in a single session, while the iShares S&P/TSX 60 Index (XIU.TO) dropped 3.7%, underperforming broader global markets. The downturn was driven by a confluence of factors: the U.S. announced new tariffs on Canadian aluminum and steel imports, sparking fears of retaliatory measures and trade disruption. Simultaneously, rising U.S. Treasury yields and a stronger dollar pressured commodity currencies and mining stocks. The materials sector, which accounts for over 25% of the TSX’s market cap, led losses with a 5.1% decline, while financials fell 2.8% amid worries about credit tightening and reduced capital flows. Markets reacted sharply, with implied volatility on the TSX rising 22% in intraday trading. Investors pulled $1.3 billion from Canadian equity funds in the first two days of the week, according to clearing data. The sell-off also impacted commodity-linked currencies, with the Canadian dollar weakening 1.7% against the U.S. dollar, reaching $0.7260, its lowest level since November. Energy stocks, though less affected than mining, saw modest declines as crude oil futures settled 2.3% lower. The broader implications include increased scrutiny of Canada’s export-dependent economy and growing concerns about trade stability in North America. Market participants now anticipate heightened volatility in the coming weeks, particularly ahead of scheduled U.S.-Canada trade negotiations later in March.