Canada’s main stock index opened lower on Monday, led by losses in technology stocks, as last week’s robust U.S. jobs data dashed expectations of the U.S. Federal Reserve cutting interest rates this year.
The TSX wilted 156.68 points, to open the week at 24,611.05.
The Canadian dollar eked up 0.05 cents at 69.41 cents U.S.
Canadian investors have been on edge as they wonder whether U.S. President-elect Donald Trump, set to take office on January 20, would stick with his plans of a 25% tariff on Ottawa.
In corporate news, renewable fuel producer Tidewater Renewables on Friday announced the sale of its interest in the Rimrock Renewables natural gas partnership. Tidewater shares dipped five cents, or 6.3%, to 74 cents.
ON BAYSTREET
The TSX Venture Exchange lost 3.16 points early Monday to 605.26.
All but one of the 12 TSX subgroups lost ground in Monday’s first hour with health-care sagging 2.2%, gold sinking 2%, and materials off 1.5%
The lone gainer proved to be energy, picking up 1%.
ON WALLSTREET
Stocks slipped Monday as key tech shares that have led the bull market continued to be dumped by investors.
The Dow Jones Industrials resurfaced 183.4 points to open Monday at 42,121.85.
The S&P 500 Index dropped 31.97 points to 5,795.07. All three benchmarks are down for the last two weeks, with tech shares causing most of the damage.
Palantir and Nvidia, two of the bull market leaders popular with retail investors, shed more than 3% each — building upon their losses from last week. Nvidia fell nearly 6% during the period, while Palantir lost 11%. Other popular tech shares including Tesla and Micron were also down.
Investors are hoping the start of the fourth-quarter earnings season with stabilize markets. Banks including Citigroup, Goldman Sachs and JPMorgan Chase report on Wednesday, while Morgan Stanley and Bank of America will post results on Thursday.
Data this week includes the December consumer price index on Wednesday morning. Before that, investors will parse wholesale inflation with December’s producer price index report on Tuesday.
Prices for the 10-year Treasury sank, lifting yields to 4.79% from Friday’s 4.76%, its highest level since late 2023 after the jobs report. Treasury prices and yields move in opposite directions.
Oil prices gained $1.10 to $77.67 U.S. a barrel.
Prices for gold slipped $26.50 an ounce to $2,688.50 U.S.
