Equity markets in Canada’s largest market resumed their downward journeys Monday, after big gains in the morning seemed to signal a recovery from last week’s major selloff.
The S&P/TSX Composite Index fell 159.47 points, or 1.1%, to conclude Monday at 14,728.
The TSX fell 3.7% in the previous week, its worst week since February, hurt by concerns over the impact of tariffs on corporate profits, slowing global economic growth and as the Bank of Canada raised its benchmark interest rates.
The Canadian dollar shed 0.23 cents to 76.13 cents U.S.
Health-care stocks took it hardest on the chin, as Canopy Growth capsized $7.15, or 14.1%, to $43.48, while Aurora Cannabis plummeted $1.48, or 16.1%, to $7.70.
Energy stocks also fell sharply, as Imperial Oil balked 50 cents, or 1.2%, to $41.00, while Canadian Natural Resources slid $1.14, or 3.1%, to $35.77
Tech stocks dipped as BlackBerry settled 20 cents, or 1.7%, to $11.55, while Constellation Software plunged $6.05 to $865.41.
ON BAYSTREET
The TSX Venture Exchange jettisoned 13.83 points, or 2.2%, to 629.75
All 12 subgroups were negative by day’s end, as health-care stumbled 10.1%, energy lost 3%, and information technology slouched 1.3%
ON WALLSTREET
Stocks closed lower on Monday, giving up sharp gains from earlier in the day in a wild session that saw the Dow Jones Industrial Average travel more than 900 points. The S&P 500 closed in correction territory, down 10% from its recent high.
The Dow Jones Industrials thundered lower 245.39 points, or 1%, by day’s end, to 24,442.92, erasing a 352-point gain, as Boeing dropped 6.6%. At the lows of the day, the Dow was down 566 points before coming back shortly before the close. The 30-stock index also briefly dipped into correction territory.
The S&P 500 handed back 17.44 points to 2,641.25, after gaining more than 1% earlier in the day. The benchmark is now down 10.2% from its high reached at the end of September.
The NASDAQ faded 116.92 points, or 1.6%, to 7,050.29, as shares of Amazon got pounded.
Traders blamed the possibility of more U.S.-China tariffs coupled with a drop in tech shares for the decline.
Bloomberg News reported that the U.S. is planning on slapping tariffs on more Chinese products if upcoming talks between President Donald Trump and Chinese President Xi Jinping falter. Both countries have already implemented levies on billions of dollars worth of each other's goods.
Amazon and Netflix rolled over throughout the day, capping the stock market's gains; Amazon was down 6.3% and Netflix 5%. These losses offset strong gains from bank shares. J.P Morgan Chase and Wells Fargo both climbed more than 1%, while Goldman Sachs gained 1%.
Worries over a possible slowdown in corporate earnings growth, as well as in the global economy, have sent the major indexes down sharply this month. The Dow has given back 6.7%, and S&P 500 is down 8.8% for October. The NASDAQ, meanwhile, has lost 10.9% through Friday's close.
U.S. stocks got a boost earlier on Monday after IBM agreed to buy Red Hat, an open-source software distributor, for around $34 billion. Red Hat shares surged 45.4% on the deal, while IBM's stock fell more than 4%.
Prices for the benchmark for the 10-year U.S. Treasury slumped, raising yields to 3.09% from Friday’s 3.08%. Treasury prices and yields move in opposite directions.
Oil prices sank 79 cents at $66.80 U.S. a barrel.
Gold prices recovered $4.80 an ounce to $1,231.00
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