S&P/TSX Composite Drops Over 800 Points as U.S. Markets Decline

Rowan Ashford

Published: January 30, 2026 2:17 PM ET

S&P/TSX Composite Drops Over 800 Points as U.S. Markets Decline

On Friday, Canada’s S&P/TSX Composite Index fell sharply, losing nearly 1,000 points by early afternoon. This decline is attributed to the anticipated nomination of Kevin Warsh to lead the U.S. Federal Reserve. The index dropped by 992.37 points, closing at 32,023.76.

S&P/TSX Composite Index Decline Insights

Allan Small, a senior investment adviser at iA Private Wealth, noted a significant sell-off in precious metals. Particularly, gold prices fell dramatically, with the April gold contract down by US$348.80, reaching US$5,006.00 an ounce. Despite this, gold prices have surged over 70% in the past year.

U.S. Federal Reserve Leadership Impact

The market response followed President Trump’s announcement of Warsh as the new Federal Reserve chair. Warsh’s more hawkish stance is believed to boost the U.S. dollar while negatively affecting metals priced in USD. Small emphasized that this news catalyzed the decline in the TSX.

Declines in U.S. Markets

The U.S. stock market also experienced significant drops. Notable indexes included:

Dow Jones Industrial Average: down by 529.07 points to 48,542.49
S&P 500: decreased by 55.96 points to 6,913.05
Nasdaq Composite: fell by 225.71 points to 23,459.41

The leadership of the Federal Reserve can shape global economic conditions and financial markets. Decisions on interest rates directly affect various investment prices, highlighting the importance of the Fed’s independence from political influence.

Impact of Technology Companies

Large technology stocks also contributed to the market downturn. Microsoft, a major player, reported better-than-expected earnings. However, its substantial spending on investments led to a sharp sell-off, with the stock dropping by 10% following its earnings announcement.

Currency and Commodity Updates

In the foreign exchange market, the Canadian dollar traded at 73.69 cents US, a decrease from 73.99 cents US on Thursday. Meanwhile, crude oil prices saw a slight increase, with the March contract up by 26 cents, reaching US$65.68 per barrel.

This significant decline in the S&P/TSX Composite and the broader markets reflects the ongoing volatility in response to leadership changes in the Federal Reserve and other economic indicators.