Canada’s main stock index tumbled 1% to its lowest in a week amid a broad sell-off as signs of persistent inflation in the United States pushed back hopes of an interest rate cut in the early half of the year.
The TSX Composite remained negative 91.85 points moving into noon EDT Thursday at 21,781.87.
The Canadian dollar recovered but 0.02 cents at 72.99 cents U.S.
On the TSX, rate-sensitive technology stocks declined, dragged down by crypto miners Hut 8, which lost 31 cents, or 2.5%, to $12.00, and Bitfarms, off nine cents, or 3.2%, to $2.73, tracking a 1.1% decline in Bitcoin.
If the declines hold, the sector faces its worst day in over a month.
Mullen Group sank to the bottom of the index with a fall of $1.31, or 9.1%, to $13.12, after the logistics provider’s first-quarter results missed analysts’ estimates.
Statistics Canada reported the number of employees receiving pay and benefits from their employer decreased by 17,700 (-0.1%) in February, following an increase of 35,700 (+0.2%) in January. On a year-over-year basis, payroll employment was up by 154,700 (+0.9%) in February.
ON BAYSTREET
The TSX Venture Exchange recovered 0.12 points to 574.77.
All but three of the 12 TSX subgroups were lower midday, with information technology down 1.5%, health-care pointed downward 1.3%, and communications off 0.9%.
The three gainers were gold, prospering 2.8%, materials, stronger by 1.2%, and energy, edging up 0.1%.
ON WALLSTREET
Stocks tumbled Thursday after the latest U.S. economic data showed a sharp slowdown in growth and pointed to persistent inflation.
The Dow Jones Industrials withered 568,98 points, or 1.5%, Thursday noon to 37,891.94.
The S&P 500 index swooned 55.66 points, or 1.1%, to 5,015.97.
The NASDAQ Composite stumbled 235.48 points, or 1.5%, to 15,477.27.
Meta plunged 13% after the social media giant issued light revenue guidance for the second quarter. That would be the stock’s biggest one-day decline since October 2022. International Business Machines also fell 8% after missing consensus estimates for first-quarter revenue.
Meta’s report raises concern ahead of other big tech releases. Microsoft and Alphabet are slated to post earnings after the close Thursday.
U.S. gross domestic product expanded 1.6% in the first quarter, the Bureau of Economic Analysis said. Economists polled by Dow Jones forecast GDP growth would come in at 2.4%.
Following the GDP print, traders moved down expectations for an easing of Federal Reserve monetary policy. Traders now forecast just one interest rate cut this year,
The lackluster GDP added further pressure to an already-tense market contending with concerns over a pullback in growth among technology earnings.
Prices for the 10-year Treasury slumped yields to 4.71% from Wednesday’s 4.64%. Treasury prices and yields move in opposite directions.
Oil prices fell 35 cents to $82.46 U.S. a barrel.
Gold prices revived $4.40 to $2,342.80 U.S. an ounce.
