Canada's main stock index opened lower on Tuesday as communication services and tech stocks, rattled by investor concerns around the timing of the Federal Reserve's interest rate cuts, dragged down the index while surging commodity prices limited declines.
The TSX Composite dumped 114.44 points to kick off Tuesday at 22,070.81.
The Canadian dollar was unchanged at 73.66 cents U.S.
In corporate news, cannabis firms are on the radar after the Florida Supreme Court allowed voters to decide on the fate of recreational use of marijuana in the U.S. state through a referendum in November.
Canopy Growth Corp shares popped $1.12, or 11%, to $11.32 in early trading, while Aurora Cannabis jumped 50 cents, or 8.6%, to $6.31
ON BAYSTREET
The TSX Venture Exchange eked up 0.25 points to start out Tuesday at 569.72.
All but three of the 12 TSX subgroups plunged, weighed most by communications, sliding 2.6%, information technology, down 1.7%, and industrials, off 0.9%.
The three gainers proved to be energy, better by 0.8%, gold, up 0.7%, and materials, progressing 0.4%.
ON WALLSTREET
The Dow Jones Industrial Average fell for a second day, continuing Wall Street’s lackluster start to the quarter, as bond yields increased and traders lowered expectations that the Federal Reserve would cut interest rates in June.
The 30-stock index stumbled 449.08 points, or 1.1%, to 39,117.77.
The S&P 500 fell 59.08 points, or 1.1%, to 5,184.59.
The NASDAQ swooned 254.75 points, or 1.6%, to 16,142.08.
Tesla plunged 6% after publishing disappointing first-quarter deliveries. Tech-related giants Netflix, Nvidia, Alphabet and Microsoft — some of this year’s big winners — were down at least 1%.
Health insurers slid after the Centers for Medicare & Medicaid Services finalized the 2025 rate announcement for Medicare Advantage and prescription drug coverage. In 2025, payments from the government toward these plans are expected to rise 3.7% year over year, unchanged from an earlier proposed rate. Humana lost 9%, while UnitedHealth dropped 5.9% and CVS Health tumbled 6.5%.
February’s core personal consumption expenditures price index released Friday showed a 2.8% annual increase, about even with December and January’s 2.9% rate and still a way to go from the Fed’s 2% inflation target.
Prices for the 10-year Treasury collapsed, hiking yields to 4.38% from Monday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices improved $1.09 at $84.80 U.S. a barrel.
Gold prices picked up $33.60 to $2,290.70 U.S. an ounce.
