Energy helps pull S&P/TSX composite lower, U.S. markets mixed amid employment data

The Bay Street financial district is shown in Toronto. THE CANADIAN PRESS/Nathan Denette

TORONTO — Canada’s main stock index was weighed down by losses in the energy sector on Tuesday, while U.S. markets posted mixed results as investors sifted through employment data. 

“I think the bottom line is there’s a lot of data coming in now, people are trying to figure out if it’s reliable or not and how it suits the scenario teeing up for next year,” said Carol Schleif, chief market strategist at BMO Private Wealth.

Going forward, she said there are a lot of reasons for investors to be optimistic about Canadian and U.S. equities, despite higher valuations, particularly in the U.S. market. 

“One thing that went undercounted all year is there was a lot of concern about companies and consumers, and the one thing that they proved over and over again was how resilient they are,” she said.

Weakness in the TSX energy sector came amid a decline in commodity prices, where the February crude oil contract was down US$1.54 at US$55.13 per barrel.

Shares of Teck Resources Ltd. finished flat on the day after Industry Minister Mélanie Joly approved a merger between the company and Britain’s Anglo American PLC that will create a copper mining powerhouse. 

“Bottom line is (in) certain industries, size matters, so letting those deals go through and being amenable to be competitive ... I think we’ll see more of that,” Schleif said.

The S&P/TSX composite index fell 219.51 points to 31,263.93. 

In New York, the Dow Jones industrial average was down 302.30 points at 48,114.26. The S&P 500 index was down 16.25 points at 6,800.26, while the Nasdaq composite was up 54.05 points at 23,111.46.

The U.S. stock market drifted through a mixed day of trading Tuesday after reports on the economy did little to clear uncertainty about where interest rates may be heading.

“Investors are still trying to get their head wrapped around what the run rate of the (U.S.) labour market is,” Schleif said. 

Treasury yields eased in the bond market after one report said the U.S. unemployment rate was at its worst level since 2021, but employers also added more jobs last month than economists expected. A separate report, meanwhile, said an underlying measure of strength for revenue at U.S. retailers grew more in October than economists expected.  

The mixed data meant little change in traders’ hopes that the U.S. Federal Reserve may continue to cut interest rates further in 2026. What the Fed does with interest rates is a top driver for financial markets because lower rates can boost the economy and prices for investments, even if they also may worsen inflation.

The Canadian dollar traded for 72.74 cents US compared with 72.62 cents US on Monday. 

The February gold contract was down US$2.90 at US$4,332.30 an ounce.

This report by The Canadian Press was first published Dec. 16, 2025.