Stocks were again headed in the wrong direction Thursday, as oil prices again overwhelmed the market in light of doubt as to the immediate future of the war in the Middle East.
The TSX retreated 400.28 points, or 1.1%, to close Thursday at 35,506.28
The Canadian dollar moved back 0.15 cents to 72.29 cents.
Pipeline operator Enbridge said on Wednesday it will buy Tallgrass Energy's crude oil business for $2.55 billion in cash, expanding its U.S. liquids pipeline network by buying a majority stake in the Pony Express Pipeline and other assets.
Enbridge shares subsided $2.54, or 3.7%, to $66.74.
Miners led losses on the benchmark with NGEx Minerals dipping $2.57, or 9.1%, to $25.65, while Trekor dished off $1.22, or 9.9%, to $11.11.
Gold stocks took it o the chin, with NovaGold giving back 67 cents, or 6%, to $10.54, while Kinross Gold lost $1.75, or 4.2%, to $40.00.
Real-estate issues also lost strength, with Altus Group falling $2.75, or 5.9%, to $44.07, while Colliers International subsided $4.76, or 3.6%, to $126.07.
Financials proved the only gainer, with Great-West Lifeco, up $1.60, or 1.8%, to $91.21, while IGM Financial added $1.34, or 1.6%, to $86.86.
U.S. President Donald Trump threatened to hit Iran's Pickaxe Mountain, a site associated with the Islamic Republic's nuclear program, and said that he expects the war to end after the midterm elections in the U.S.
ON BAYSTREET
The TSX Venture Exchange dipped 26.1 points, or 2.7%, to 930.88
All but one of the 12 subgroups fell Thursday, weighed most by materials, down 3.7%, and gold, failing 2.9%, real-estate, off 2%,
Only financials so much as broke even, gaining 0.1%.
ON WALLSTREET
Stocks dropped Thursday after U.S. oil prices topped $100 a barrel, amid growing fears of higher inflation from a prolonged war in the Middle East.
The Dow Jones Industrials took a header of 316.2 points to 52,064.46.
The S&P 500 sank 44.57 points to 7,581.79
The NASDAQ Composite retreated 171.62 points to 26,081.73.
Higher oil prices continued to weigh on sentiment, as the war between the U.S. and Iran stretched into a seventh month. U.S. West Texas Intermediate closed at $102.48, up 6.7%, the highest close since May 19.
Since the Iran war began at the end of February, WTI is up 52.9%, and it’s up by 78.47% year-to-date. Futures for the international benchmark Brent crude for November delivery spiked above $105 a barrel during the trading day.
The jump in oil prices pushed the 10-year Treasury yield above 4.945%, the highest level since at least October 2023.
The major averages are coming off a three-day slide, after the Treasury Department said it would buy back up to $6 billion in longer-term debt – triple the usual amount. Less than a month ago, the Treasury said it would more than double the size of its $2-billion government debt repurchases.
High beta chip stocks that have led the bull market traded lower on fears higher rates and oil could slow the economy. Intel and Micron Technology both fell 5%.
Prices for the 10-year Treasury descended, raising yields to 4.95% from Wednesday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices added $6.58 to $102.63 U.S. a barrel.
Gold prices jettisoned $98.90 to $4,361.80 U.S. an ounce.
Dow Records 4-Day Drop
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