Toronto stocks fell Tuesday, posting a second day of losses in a row as investors reacted to a decline in commodities prices and continued confusion over the shape and direction of the U.S. government’s proposed bailout plan of Wall Street financial firms.

The S&P/TSX composite index dropped 105.44, or 0.83%, to 12,532.63, weighed down by the energy and materials sector. Altogether, six of the TSX’s 10 subindices finished in negative territory.

The materials subindex fell 4.66%, with the gold subindex fell 3.22%. Gold futures gave back $17.80 to close at $891.20 an ounce on the New York Mercantile Exchange after gaining $44.30 on Monday.

Goldcorp Inc. fell 78¢, or 2.06%, to finish the session at $37.11.

The energy subindex dropped 1.98%. Light, sweet crude for November delivery fell $2.76, or 2.5%, to $106.61 on the Nymex, after yesterday’s more than $16-runup in the price of oil.

Petro Canada fell 68¢, or 1.82%, to $36.72.

Financials rallied 2.13%, after falling 3.7% the previous session, as investors moved back into the sector. Royal Bank of Canada moved up 49¢, or 0.98%, to close at $50.49.

The Canadian dollar fell to US96.50¢, down 0.3% from yesterday’s close.

The S&P TSX Venture Exchange fell 37.39, or 2.37%, to 1,538.60.

In New York, investors watched closely as members grilled Congress Treasury Secretary Henry Paulson and chairman of the Federal Reserve, Ben Bernanke, proponents of the bailout plan, over details of how the plan would work. The uncertainty has led the key Wall Street markets lower.

The Dow Jones gave up 161.51, or 1.5%, to end at 10,854.17, the S&P500 moved down 18.87, or 1.6%, to 1,188.22, and the Nasdaq composite index declined 25.64, or 1.2%, to 2,153.34.