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

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 .GSPTSE 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 .SPTTGD fell 7%, with spot gold XAU= sliding 6.6% after briefly slipping below the $5,000 mark, while the U.S. dollar strengthened after a recent slide. GOL/

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

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

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

Bombardier BBDb.TO 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 .GSPTTIN down 1.7%.

Meanwhile, data showed economic growth stalled in November as growth in services was offset by weakness in goods-producing industries.