TSX Caught in General Stock Malaise

Canopy, HUT in Focus

Stocks in Canada pretty much aped their American counterparts by the close of business Tuesday, with tech and health-care leaning heaviest on the index.

The TSX Composite tumbled 341.83 points, or 1.7%, to conclude business Tuesday at 19,654.40.

The Canadian dollar gave back 0.11 cents to 75.97 cents.

Tech issues suffered the biggest bruises, with HUT 8 Mining handing back 41 cents, or 13.2%, to $2.70, while Tecsys slid $3.36, or 10.6%, to $28.22.

In health-care, Canopy Growth settled 41 cents, or 8.3%, to $4.54, while Aurora Cannabis dropped 14 cents, or 6.6%, to $1.97.

Real-estate suffered, too, as units in Artis REIT let go of 47 cents, or 4.2%, to $10.75, while Dream Office REIT shed 76 cents, or 4.1%, to $17.76.

ON BAYSTREET

The TSX Venture Exchange plummeted 13.61 points, or 2.1%, to 645.93

All 12 TSX subgroups were lower on the day, with information technology sliding 3.3%, health-care declining 3.1%, and real-estate off 2.9%.


ON WALLSTREET

Stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve.

The Dow Jones Industrials unraveled, losing 1,276.37 points, or 3.9%, to close Tuesday at 31,104.97

The S&P 500 let go of 177.42 points, or 4.3%, to 3,932.69.

The NASDAQ Composite retreated 632.84 points, or 5.2%, to 11,633.57.

More than 490 stocks in the S&P 500 fell, with Facebook-parent Meta dropping 8% and Caesars Entertainment losing 7.3%.

The drop erased nearly all of the recent rally for stocks, pulling the S&P 500 back toward its Sept. 6 close of 3,908 and causing some traders to glance back at mid-June, when the index fell below 3,700.

The selloff was particularly painful in high-growth tech stocks. Cloudflare fell more than 9%, while Unity Software sank 12%.

Shares of direct-to-consumer auto retailer Carvana slid more 13%, making it one of the worst performers on the New York Stock Exchange.

The August consumer price index report showed a higher-than-expected reading for inflation. Headline inflation rose 0.1% month over month, even with falling gas prices. Core inflation rose 0.6% month over month. On a year-over-year basis, inflation was 8.3%.

Economists surveyed by Dow Jones had been expecting a decline of 0.1% for overall inflation, with a rise of 0.3% for core inflation.

The report is one of the last the Fed will see ahead of its Sept. 20-21 meeting, where the central bank is expected to deliver their third consecutive 0.75-percentage-point interest rate hike to tamp down inflation.

The unexpectedly high August report could lead the Fed to continue its aggressive hikes longer than some investors anticipated.

Treasury prices fell hard Tuesday, raising yields to 3.42% from Monday’s 3.35%. Treasury prices and yields move in opposite direction.

Oil prices came off their lows of the day, but still retreated 23 cents to $87.55 U.S. a barrel.

Gold prices sank $27.50 to $1,713.10 U.S. an ounce.