Stocks Take Pounding on Friday

Canopy, Open Text in Focus

Equities in Canada’s largest centre added Friday to its weekly losses, echoing weak sentiment on Wall Street, after Federal Reserve Chair Jerome Powell said U.S. monetary policy will need to be tight "for some time" before inflation is under control.

The TSX plummeted 299.05 points, or 1.5% to close off Friday at 19,873.20. Over the last five sessions, the index lost 238 points, or 1.2%.

The Canadian dollar fell 0.58 cents to 76.71 cents U.S.

Health-care weighed most heavily on the market by the close, with Canopy Growth down 47 cents, or 8.6%, to $4.97, while Aurora Cannabis dipped 18 cents, or 8.2%, to $2.01.

OpenText fell $6.55, or 13.6%, to $41.59, after the software company agreed to buy British enterprise software maker Micro Focus in an all-cash deal valuing it at $6 billion including debt. Elsewhere in the tech sector, Dye & Durham, sank 32 cents, or 6.2%, to $4.82.

Gold also descended, as Iamgold trailed Thursday’s close by 12 cents, or 6.7%, to $1.66, while Equinox Gold docked 32 cents, or 6.2%, to $4.82.

ON BAYSTREET

The TSX Venture Exchange handed back 15.34 points, or 2.3%, to 645.92, for a loss on the week of four points, or 0.6%.

All 12 TSX subgroups were lower, with information technology cratering 4.1%, health-care down 3.9%, and gold dulling 3.2%.


ON WALLSTREET

Stocks plummeted Friday after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank won’t back off in its fight against rapid inflation.

The Dow Jones Industrials was pummeled for a loss of 1,008.35 points, or 3%, to close the week at 32,687.06.

The S&P 500 dumped 141.46 points, or 3.4%, to 4,057.66.

The NASDAQ Composite stumbled 497.55 points, or 3.9%, to 12,141.71.

The major averages declined for a second week. The Dow slid 4.2%. The S&P 500 lost roughly 4% and NASDAQ handed back lost roughly 4.4%.

Those moves follow a hawkish speech from the Fed chair who reiterated a tough stance against inflation, spurring investors to weigh the implications of higher interest rates for longer.

Meanwhile, one of the Fed’s favorite inflation measures, the personal consumption expenditures data, on Friday showed price increases eased in July. The University of Michigan consumer sentiment index showed a better-than-expected reading.

Treasury prices hiked, lowering yields to Thursday’s 3.03%. Treasury prices and yields move in opposite direction.

Oil prices gained 35 cents to $92.20 U.S. a barrel.

Gold prices tumbled $21.70 to $1,749.70 U.S. an ounce.