TSX Down 485 Points With Miners, Tech Sectors The Worst Performers

12:17 PM EDT, 10/21/2025 (MT Newswires) -- The Toronto Stock Exchange has dropped 485 points at midday with miners (-3.7%) and info tech (-1.3%), the worst performers.

Gold is down 4.7%, while silver is 6.4% lower. Copper, down 1%.

Telecoms, up 0.3% and industrials (+0.07%), the sole gainers.

Headline CPI inflation for September came in at 2.4% year-on-year (y/y), ahead of expectations for a 2.2% y/y print. September's reading was up from 1.9% in August.

CIBC says underlying inflation appears to have firmed up in the past two months, but it remains within the Bank of Canada's target range. "One hotter-than-expected month does not a new trend make, but it is worth monitoring whether the strength in price pressures is indicative of ongoing consumer resilience," it added.

The BoC should still have room to deliver another cut. The economic outlook is fraught with risks, and the elevated unemployment rate reflects an economy with ample slack, something yesterday's Business Outlook Survey reinforced. Markets seem to agree, pricing the odds for an October cut at 69%, just below the 77% pre-release, CIBC added.

RBC says inflation continues to run above the BoC's 2% target, but notes that was also true when the central bank cut the overnight rate in September. The breadth of inflationary pressure did narrow slightly by its count in September. "A higher unemployment rate, lower business inflation expectations in the BoC's own Business Outlook Survey, and the removal of most Canadian counter-tariffs, should reinforce the BoC's view that upside inflation risks have eased -- and our base-case assumes one more reduction in the overnight rate next week in October" RBC says.

That, RBC noted, would leave the overnight rate at the lower bound of its estimated neutral range (2.25%), a rate that is not adding to or subtracting to inflation pressures over time. RBC expects cutting beyond that, into outright stimulative levels of interest rates, will be more difficult with inflation still sticky at an above-target rate and fiscal policy potentially ramping up as a support after the federal budget in early November.

In stocks, Galaxy Digital (GLXY) , which reported a third-quarter beat earlier Tuesday, is trading at record high levels with 1.36 million shares changing hands.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.