• TSX ends down 0.1% at 23,968.50
• Posts second straight modest decline
• Materials sector loses 1.2% as copper falls
• Energy rises 2.8%; oil settles 5.2% higher

Oct 3 (Reuters) - Canada's main stock index ended lower for a second straight day on Thursday as investors grew cautious ahead of a key U.S. employment report, but gains for energy shares on soaring oil prices helped contain the market's decline.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 33.05 points, or 0.1%, at 23,968.50, adding to a modest pullback since notching a record closing high on Tuesday.

"We've seen investors taking a pause to consider things," said Michael Sprung, president of Sprung Investment Management. "We're waiting for some employment numbers tomorrow ... the market is waiting to see where that shakes out."

U.S. nonfarm payrolls data, due on Friday, is expected to show the American economy added 140,000 jobs in September. Investors are anxious for more data on the labor market after the Federal Reserve last month cut its benchmark interest rate by an unusually large 50 basis points.

"We've been through a somewhat exuberant market and certainly valuations appear very high," Sprung said.

The materials sector, which includes fertilizer companies and metal mining shares, ended 1.2% lower as copper prices declined.

Shares of NovaGold Resources (NG.TO) , opens new tab were particularly hard hit, ending down 12.7%, after the company reported quarterly results.

The utilities and real estate sectors fell 1.3% and 1.7% respectively as bond yields climbed after the release of strong U.S. services sector data. The Canadian 10-year yield was up 7.3 basis points at 3.100%.

The energy sector was one of just three sectors to notch gains. It advanced 2.8% as the price of oil settled 5.2% higher at $73.71 a barrel over concerns that the escalating Middle East conflict could hit crude supply.

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https://www.reuters.com/markets/tsx-futures-fall-ahead-us-data-middle-east-conflict-adds-uncertainty-2024-10-03/