TORONTO (Reuters) - The Toronto Stock Exchange's main index dropped yesterday as surging commodity prices failed to lift the market and traders awaited an expected cut in US interest rates.

The S&P/TSX composite index fell 36.55 points, or 0.26 percent, to close at 13,809.86.

All but two of the benchmark's main groups declined, including the heavyweight energy and materials sectors, which fell 0.35 percent and 0.12 percent respectively.

Financials gained 0.15 percent, while utilities added 0.27 percent.

The S&P/TSX 60 index of Canadian bluechips edged 2.35 points lower to finish at 801.56.

The session's broad declines came despite strength in the gold price and record highs for US crude oil futures, which continue to trade at more than $80 per barrel.

"It's unusual that the stocks aren't following the commodities," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

"You'd kind of think the materials and the oils would be pretty good."

Heritage Oil fell C$1.55, or three percent, to C$49.45. Interoil Corp gave up C$1.17, or 3.2 percent, to finish at C$35.58.

Kinsey said investors were eagerly awaiting a much-expected rate move by the US Federal Reserve today.

"Everybody's really waiting to see what Mr. Bernanke could do," he said in reference to Fed chairman Ben Bernanke.

Some expect the US central bank will cut rates by as much as 50 basis points.

Big gainers on the TSX on Monday included Fairfax Financial Holdings Ltd, which rose C$3.55, or 1.41 percent, to finish at C$254.80, and Pinetree Capital, which spiked C$1.04, or 19.1 percent, to finish at C$6.49.

Fergal Smith, managing market strategist at Action Economics, also said investors spent yesterday "sitting on their hands" ahead of today's Fed meeting.

Aside from the Fed, Smith said that housing and inflation data are due later this week and will also likely capture the market's attention.

"I think there's a lot for the market to absorb over the next few sessions," Smith said.

In the United States, the Dow Jones industrial average fell 39.10 points, or 0.3 percent, to 13,403.42 on ongoing credit worries.

The tech-heavy Nasdaq declined 20.52 points, or 0.8 percent, to 2,581.66.