CANADA STOCKS-TSX crashes over 2% amid gold slump after Trump picks new Fed chair

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TSX slumps 2.3%

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Miners plunge after Kevin Warsh picked new Fed chair

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Bombardier falls 6.7% after Trump's tariff threats

(Updates throughout, adds details and analyst comments)

By Utkarsh Hathi

Jan 30 (Reuters) - Canada's main stock index tumbled over 2% on Friday, hammered by plunging mining shares, as ?gold slumped after U.S. President Donald Trump nominated Kevin Warsh - often viewed as hawkish - as the new ?Federal Reserve chair.

The S&P/TSX Composite Index was down 2.3% at 32,268.84 points ?as of 10:31 a.m. ET, amid a broader ?decline, and was on track ?for its biggest one-day drop since April 25, when Washington's sweeping universal tariff threats roiled global markets.

Despite ?the day's losses pushing the benchmark ?index toward a 2.6% weekly decline, the TSX was up 1.8% for the month, poised for its ninth consecutive monthly advance, ?its longest streak since 2017.

Trump named former ?Fed Governor ?Warsh to succeed Jerome Powell when his term ends in May, giving a frequent Fed critic a chance to put his idea of ?monetary policy "regime change" into practice.

"He's historically been quite hawkish and cautious about inflation and the Fed's balance sheet, but he's...become more supportive of lower short-term rates," said Shiraz Ahmed, founder at Sartorial Wealth.

The gold sector fell 7%, with spot gold sliding 6.6% after briefly slipping below the $5,000 mark, while the U.S. dollar ?strengthened ?after a recent slide.

The selloff, described by analysts as profit-taking, also pressured silver, along with copper and other base metals.

The broader materials ?index declined 6.2% and was on track for its biggest single-day drop since October 2025

Among individual stocks, Imperial Oil (IMO) fell 4.5% after the oil producer's fourth-quarter profit fell.

Bombardier fell 6.7% after Trump threatened the decertification of its business jets and 50% import tariffs on all aircraft made in Canada, until the country's regulator certified a number of ?planes produced by its U.S. rival Gulfstream.

The Canadian jet maker's fall dragged the industrials index down 1.7%.

Meanwhile, data showed economic growth stalled in November as growth in services was offset by weakness ?in goods-producing industries. (Reporting by Utkarsh Tushar Hathi; Editing by Jonathan Ananda and Vijay Kishore)