Equities in Canada’s largest centre fell on Friday, echoing a 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 237.8 points, or 1.2% to break for lunch at 19.934.54.
The Canadian dollar capsized 0.36 cents to 76.92 cents U.S.
Among single stocks, OpenText fell $5.68, or 11.8%, to $42.46, 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.
ON BAYSTREET
The TSX Venture Exchange handed back 14.69 points, or 2.2%, to 646.57.
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 sold off sharply 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 fell without a parachute, 604.72 points, or 1.8%, to pause for lunch at 32,687.06.
The S&P 500 dumped 88.65 points, or 2,1%, to 4,110.47.
The NASDAQ Composite stumbled 334.99 points, or 2.7%, to 12,304.27.
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.
The major averages were on pace for their second straight down week. The Dow is on track for a 2.9% decline. The S&P 500 is set for 2.8% off, and the NASDAQ stands to lose 3.2%.
Communication services and information technology were the biggest laggards in the S&P 500 as investors fretted over the likelihood of higher interest rates. Meanwhile, utilities and energy were the best-performing sectors in the broader market index.
Shares of Affirm declined 22% after the consumer lending company issued weak full-year revenue guidance.
Treasury prices hiked, lowering yields to Thursday’s 3.03%. Treasury prices and yields move in opposite direction.
Oil prices dropped 32 cents to $92.20 U.S. a barrel.
Gold prices tumbled $23.90 to $1,747.50 U.S. an ounce.
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