TSX Closes at a One-Month Low of 35,154.76 as Four Straight Declines Follow a Global Bond Selloff

Canadian equities slipped to a one-month low as a global rise in bond yields weighed on financial and mining shares, while energy and technology gains limited the decline. Photo: iStock.

Market

TSX Closes at a One-Month Low of 35,154.76 as Four Straight Declines Follow a Global Bond Selloff

Oct 2, 2026 5 min The Market Desk

The Brief

The TSX closed at 35,154.76, down 81.11 points or 0.23%, a one-month low and its fourth straight daily decline.
The index is 5.16% below its August 26 high of 37,069.11, and its 2.85% September loss ended a five-month winning streak, although it posted a ninth straight quarterly gain.
A global bond selloff drove the move, with the US 10-year yield touching 5.342%, its highest since 2002, and the Canadian 10-year near 3.99%.
Materials were the weakest sector and financials fell, while energy gained 1.01% and technology 1.05% as WTI rose US$2.45 to US$92.87.
Breadth was negative, with 586 decliners to 373 advancers, and the next tests are September CPI on October 19 and the Bank of Canada decision on October 28.

The S&P/TSX Composite closed at 35,154.76 on October 1, down 81.11 points or 0.23%, according to Canadian Press, a one-month low according to Investing.com and the fourth straight daily decline. The index is 5.16% below its record of 37,069.11, set intraday on August 26, and it fell 2.85% in September, ending a five-month winning streak. It still posted its ninth straight quarterly gain, the longest such streak on record, according to Kitco.

The cause was global, not Canadian. A bond selloff took the 10-year US Treasury yield to an intraday 5.342%, its highest level since 2002, according to Reuters, and the Canadian 10-year yield touched about 3.99%, according to Kitco. Higher yields weigh on financials and on mining shares, and those were the sectors that led the decline, while the same oil price that feeds Canadian inflation lifted energy.

The TSX has now closed below its 10-day average for seven straight sessions, and the October 1 close is 1.46% under it. The series since the August record shows a market that rallied into early September, gave back 2.8% in three sessions around the September 10 oil spike, and has lost 3.25% since its September 22 close.

S&P/TSX COMPOSITE, DAILY CLOSE 35,154.76 ▼ 0.23% OCT 1 DAILY | AUG 26 TO OCT 1, 2026

Source: Investing.com, S&P/TSX Composite historical data, Aug 26 to Sep 28, 2026; Canadian Press, Oct 1, 2026 close. | hdq.ca

Closes are daily values for the S&P/TSX Composite from Investing.com, with the September 29 and 30 closes taken from Investing.com and Canadian Press reports, so open, high, low and volume are not shown. The record of 37,069.11 is the intraday high on August 26.

Why Materials and Financials Led the Decline

Basic materials fell 1.26% on October 1, the weakest sector, and financials fell 0.32%, according to The Canadian Vanguard. Gold rose US$15.60 to US$4,202.30 an ounce, according to Canadian Press, yet mining shares fell, pressured by stronger Treasury yields and a firmer US dollar, according to Trading Economics. DPM Metals fell 8.91%, the largest decline on the index, according to Investing.com. RBC fell 0.7% and BMO fell 0.6%, according to Trading Economics.

First Quantum Minerals showed how volatile single names have become. The stock fell 15.3% on September 30 over its Cobre Panama mine and rebounded 0.5% on October 1 after a Panamanian government commission recommended negotiations on a new framework for the mine, according to Trading Economics.

The Energy and Technology Offset

Energy rose 1.01% and technology rose 1.05%, according to The Canadian Vanguard. WTI crude rose US$2.45 to US$92.87 a barrel, according to Canadian Press, and Enerflex led the index with a gain of 11.89%, according to Investing.com. Canadian Natural rose 1.7% and Suncor 1.8%, according to Trading Economics. On Wall Street the S&P 500 gained 0.19% to 7,666.45 and the Nasdaq Composite gained 0.04% to 26,871.60.

The offset was not enough. Decliners outnumbered advancers 586 to 373 on the Toronto exchange, according to Investing.com, and the Canadian dollar slipped to 70.21 US cents from 70.48 cents on Tuesday, according to Canadian Press. Breadth has been negative for four sessions.

What the Next Four Weeks Test

The index holds 5.16% below its record with three dated catalysts ahead. The Toronto Stock Exchange is closed on Monday, October 12 for Thanksgiving, September CPI is due on October 19, and the Bank of Canada announces its decision with a Monetary Policy Report on October 28, an event that traders priced near even odds for a hike in mid-September, according to BNN Bloomberg. A further rise in bond yields would keep the index below its 10-day average, now at 35,675.

Sources

Investing.com, S&P/TSX Composite historical data, Aug 26 to Sep 28, 2026, and Canada stocks lower at close of trade, Oct 1, 2026; Canadian Press, S&P/TSX composite closing report, Oct 1, 2026; The Canadian Vanguard, stock market report, Oct 1, 2026; Trading Economics, Canada stock market, Oct 1, 2026; Kitco, TSX futures slip as global bond rout pushes yields higher, Oct 1, 2026; Reuters, global bond selloff, Oct 1, 2026; BNN Bloomberg, odds of a Bank of Canada hike, Sep 18, 2026.

Educational content only. This article is published for informational and professional development purposes. It does not constitute investment advice, financial planning advice, or a recommendation to buy or sell any security. Canadian advisors should apply their own professional judgment. Full disclaimer.

Advisor Toolkits — Oct 2, 2026

🛡️ Respond ▼

What They're Feeling

Clients see a market at a one-month low, headlines about bond yields at levels not seen since 2002, and an index that has slipped for four sessions. Those near retirement worry that a decline is starting. Those with mining or bank holdings feel the losses most, and many do not understand why gold rose while gold stocks fell.

What to Say

The TSX closed at its lowest level in a month on Thursday and is about 5% below its August record. The cause is global: bond yields have jumped, with the US 10-year the highest since 2002, and that puts pressure on banks and mining stocks. A pullback of this size is not unusual, and the index has still posted nine straight quarterly gains. I am not suggesting a change to your plan because of one week. What I would like to do is check how much of your portfolio sits in the areas most sensitive to rising yields, and confirm that your cash and fixed income cover the next 12 months of spending so that you are never forced to sell shares in a down market.

Who's Affected

High impact: clients concentrated in mining and materials, retirees drawing income from equities, and holders of long-term bond funds whose prices fall when yields rise.

Mixed impact: balanced clients with both banks and energy, where energy gains softened the decline, and clients with US dollar holdings, which gain in Canadian dollar terms when the loonie weakens.

Potential benefit: clients holding cash who want to rebalance toward equity targets, and those with energy and technology holdings.

Action Checklist

Pull a report of materials and mining exposure above the target weight for each client.

Confirm that retirees in drawdown hold 12 months of spending in cash or short-term fixed income.

Review the duration of bond funds and the date of the next rebalancing review.

Identify clients below equity targets for a staged rebalancing discussion.

Diarize October 12 (market closed), October 19 (September CPI) and October 28 (Bank of Canada decision).

Follow-Up Email Template

Subject: The TSX pullback and what it means for your plan

Hi [Client Name],

Thank you for speaking with me. A short summary of what we covered.

The TSX closed at 35,154.76 on October 1, about 5% below its August record, as a global rise in bond yields weighed on banks and mining stocks while energy and technology gained. The index has still gained for nine straight quarters.

I am not recommending a change to your plan because of one week of trading. I am reviewing your exposure to rate-sensitive sectors and confirming that your cash and fixed income cover your next 12 months of spending. Three dates matter: October 19 for September inflation data, October 28 for the Bank of Canada decision, and the market holiday on October 12.

I will come back to you with options shortly.

[Your Name]

This communication is for educational purposes only and does not constitute personalized investment advice.

🎯 Prospect ▼

Client Profiles to Target

Self-directed investors holding mining shares: gold rose while gold stocks fell, and a single stock such as First Quantum moved 15% in one day.

Retirees drawing income from an equity-heavy portfolio: a pullback while withdrawing raises the cost of selling at lower prices.

Investors holding long-term bond funds: yields at the highest since 2002 mean falling fund prices.

Clients sitting in cash since the August high: they are waiting for a pullback and have no plan for how to use one.

Opening Line

The TSX is about 5% below its August record and bond yields are the highest since 2002, and I am speaking with a few people about how their portfolio holds up in a pullback like this. Do you know how much of yours is in mining, banks and bond funds?

Value Proposition

A pullback shows up as a number on a statement. The investor managing alone sees a loss. A planner sees where the loss came from, which holdings are rate-sensitive, and whether spending is covered without selling at a low.

The market has gained for nine straight quarters, and few self-directed portfolios have a written plan for the first decline that follows a run like that.

Discovery Questions

1. How much of your portfolio is in mining and materials, and how much in banks?

2. Do you hold bond funds, and do you know their duration?

3. How many months of spending do you hold in cash or short-term fixed income?

4. What would you do if the TSX fell another 5%?

5. Do you have a written rule for rebalancing?

Prospecting Email Template

Subject: A TSX pullback and bond yields at 2002 highs

Hi [Prospect Name],

The TSX closed on October 1 at a one-month low, about 5% below its August record, as bond yields climbed to levels not seen since 2002. Banks and mining stocks led the decline, even as gold rose.

I am speaking with a small number of people about how their portfolio holds up in a pullback. Would 15 minutes on [Day] work?

[Your Name]

This communication is for educational purposes only and does not constitute personalized investment advice.