TSX Falls to One-Week Low Amid Gold Price Slump and Pre-Jobs Data

Canada's main stock index, the S&P/TSX composite index, fell 0.8% to a one-week low on Thursday, weighed down by metal mining stocks and ahead of domestic jobs data that could influence interest rate decisions by the Bank of Canada. The materials sector, which includes metal mining shares, lost 2.8%, while industrials fell 1.1% and consumer discretionary declined 1.2%. Technology shares rose 0.8%, adding to gains from the previous session.

The Toronto Stock Exchange's S&P/TSX Composite Index fell 0.8% to a one-week low on Thursday, September 12, 2025, weighed down by metal mining stocks and ahead of domestic jobs data that could influence interest rate decisions by the Bank of Canada. The materials sector, which includes metal mining shares, lost 2.8%, while industrials fell 1.1% and consumer discretionary declined 1.2%. Technology shares rose 0.8%, adding to gains from the previous session Toronto Stocks Ease Back on Recent Strength^[1].

The pullback in Toronto stocks follows a period of recent strength, with the index finishing at a fresh all-time high on Monday. Losses were spread widely across sectors, led by finance stocks and miners, as the recent surge in the price of gold eased. Among finance names, Fairfax Financial was down 1%, Manulife Financial was 1.1% weaker, and Sun Life Financial declined 0.9%. Big gold producers Barrick Mining and Agnico Eagle each lost more than 2%, and B2Gold dropped 4% Toronto Stocks Ease Back on Recent Strength^[1].

Meanwhile, the artificial intelligence boom is spreading from the stock market to the bond market, with AI-related companies' debt surpassing that of traditional banking and becoming the largest segment in investment-grade bond indices. According to the latest report by JPMorgan, AI-related companies currently account for 14% of the investment-grade bond index, with total liabilities reaching $1.2 trillion. Oracle's model of debt financing is sparking a debt arms race, with its debt-to-equity ratio soaring to 500%, far exceeding that of other tech giants AI is not only the hottest concept in the stock market, but it has also become a major narrative in the U.S. bond market.^[2].

Analysts warn that if there is a paradigm shift in AI, the bursting of the AI credit bubble could have an even greater impact than a stock market crash. Defaults on these debts, which are secured by future cash flows, would reverberate throughout the entire economic system AI is not only the hottest concept in the stock market, but it has also become a major narrative in the U.S. bond market.^[2].

The Bank of Canada's senior deputy governor, Carolyn Rogers, endorsed increased competition in the country's highly concentrated financial-services sector, saying this would help lift Canada out of its prolonged productivity slump. Rogers cited data indicating the country's six largest lenders hold over 90% of the country's banking assets. The banking sector's concentration has contributed to financial stability in Canada, she said, but this comes at the cost of greater innovation and competition Canada's Financial Sector Needs Increased Competition, Bank of Canada Official Says -- Update^[3].