The S&P/TSX Composite Index, which was down 170 points earlier Wednesday, pared losses and was last down 94 points. The weakness followed the prior session's steep drop of 391 points.
The deepest falls took place in the industrial and financial sectors, which fell 1.2% and 0.8%, respectively.
The energy sector was the sole gainer, up 0.9% at last look, boosted by sharply higher Brent and WTI crude oil prices.
In stocks, Northwest Company (NWC.TO) shares rose 7.8% to CA$52.91 after it reported its second-quarter results and lifted its dividend to CA$0.42 per share.
S&P/TSX weakness came on the heels of Tuesday's escalation of US-Canada trade tensions, with President Trump banning US imports of certain Canadian goods including alcohol and motorcycles. Shares of Bombardier (BBD-B.TO), which earlier this week was threatened with a ban by Trump, fell for a second day. Bombardier shares were down 0.8% on last look at CA$303.05.