• TSX down 0.58% as seven sectors decline
• Canadian banks to set aside C$5.22 billion in loan-loss provisions
• NovaGold and Energy Fuels Inc gain amid sector declines

Aug 25 (Reuters) - Canada's main stock index closed in the negative on Monday as investors get ready for a week of earnings from top domestic lenders.

Despite U.S. Federal Reserve Chair Jerome Powell's hints about interest rate cuts propelling the market to new heights in the previous session, investors remained cautious.

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At the end of Monday's trading, the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab closed down 0.58% at 28,169.94 points.

Of the 10 sectors, seven closed in the red, the healthcare index (.GSPTTHC) , opens new tab fell the most with a 2.22% decline, followed by industrials (.GSPTTIN) , opens new tab.

The Canadian banks will kick off earnings season on Tuesday, beginning with Bank of Montreal (BMO.TO) , opens new tab and Bank of Nova Scotia (BNS.TO) , opens new tab. Canada's big six banks are expected to set aside a total of C$5.22 billion in loan-loss provisions for the third quarter, compared to C$6.37 billion in the second quarter, according to data compiled by LSEG.

Most resources and energy stocks fared well, with NovaGold (NG.TO) , opens new tab and Energy Fuels Inc gaining 5.6% and 3.55% respectively.

Big banks are expected to have cut third-quarter loan-loss provisions from the prior quarter, according to data compiled by LSEG, as the hit from U.S. tariffs on loan portfolios appears less than feared.

Chipmaker Nvidia's (NVDA.O) , opens new tab results on Wednesday will attract global attention as it could determine the future of the tech-driven rally.

The Personal Consumption Expenditures Price index - the Fed's preferred inflation gauge - is due on Friday, and will be a key indicator for expectations around rate cuts.

In Canada, second-quarter GDP numbers on Friday will be watched to evaluate the impact of tariffs on the economy.

https://www.reuters.com/world/americas/tsx-closes-down-ahead-bank-earnings-2025-08-25/