Canada, U.S. markets move in opposite directions amid sell-off in precious metals

The Toronto Stock Exchange Broadcast Centre is shown in Toronto on Friday June 28, 2013. THE CANADIAN PRESS/Aaron Vincent Elkaim

Canadian and U.S. stock markets moved in opposite directions Tuesday, as basic materials stocks weighed on the S&P/TSX composite index.      

“I think the sector is also under pressure because investors are rotating out, taking profit and looking for other pockets of higher return potentials, names where the valuations aren’t as high,” said Theresa Shutt, chief investment officer at Harbourfront Wealth Management. 

The S&P/TSX composite index was down 177.16 points at 32,896.55.

The April gold contract was down US$140.40 at US$4,905.90 an ounce.

She said the market is seeing a number of positive developments, but volatility remains in the materials sector. 

Meanwhile, Canadian investors digested the latest inflation figures. 

Statistics Canada reported the annual rate of inflation ticked down to 2.3 per cent last month, slightly lower than economists had expected amid lower gas prices.

In New York, the Dow Jones industrial average was up 32.26 points at 49,533.19. The S&P 500 index was up 7.05 points at 6,843.22, while the Nasdaq composite was up 31.71 points at 22,578.38.

The U.S. stock market swung in uneasy trading on Tuesday as some tech stocks continue to feel the downside of the artificial-intelligence boom.

Drops for some Big Tech names were the heaviest weights on the U.S. market Tuesday, including a 1.05 per cent fall for Alphabet.

The moves were tentative, though, and Nvidia swung between being one of the market’s heaviest weights and one of its biggest strengths.

Shutt said that traders continue to wrestle with the outlook for artificial intelligence amid pressure on software companies.

“There’s increasing talk about winners and losers, so the AI narrative is really shifting from a broad market driving force to one where there is selectivity among these winners and losers,” she said. 

“And that could become really pivotal in how you select your portfolio positions this year.”

Last week, Wall Street shook when stocks of software and other companies tumbled as investors hunted for companies that could be potential losers if AI ends up remaking the world and their industries.

The market has seen a sharp turnaround from prior years, when the promise of AI helped drive U.S. stock indexes to record after record. Now, companies in industries as varied as software and legal services and trucking have seen investors suddenly turn against them when worries flare that AI-powered competitors could steal their customers.

The companies spending big on AI are feeling their own pressure, too.

The Canadian dollar traded for 73.23 cents US compared with 73.45 cents US on Friday.  

The April crude oil contract was down 49 cents US at US$62.26 per barrel.

This report by The Canadian Press was first published Feb. 17, 2026.