The Lows Keep Getting Lower for TSX

Gold Stocks up, Energy Falls

Weakness in energy shares dragged equities in Toronto to their lowest level in more than a year on Thursday, as fears of a recession loomed following the U.S. Federal Reserve's biggest interest-rate increase since 1994.

The S&P/TSX slumped 607.50 points, or 3.1%, to end Thursday at 19,004.06.

The Canadian dollar slid 0.36 cents to 77.31 cents U.S.

Energy stocks weighed most heavily on the index Thursday, as Secure Energy Systems drifted lower 45 cents, or 6.8%, to $6.16, while Enerplus lost $1.40, or 6.6%, to $19.88.

In the real-estate sector, units of Boardwalk REIT suffered $3.11, or 7%, to $41.63, while Altus Group faltered $2.87. or 6.5%, to $41.55.

In consumer discretionary stocks, Martinrea International doffed 83 cents, or 9.3%, to $8.13, while Magna International was worse off $6.22, or 8.1%, to $70.63.

Only gold made any progress, with Osisko Gold Royalties taking on 39 cents, or 2.7%, to $14.70, while Sandstorm Gold gained 21 cents, or 2.6%, to $8.28.

On the economic front, Statistics Canada reported wholesale trade fell 0.5% in April to $79.8 billion, the second decrease in the past three months.

ON BAYSTREET

The TSX Venture Exchange tumbled 16.1 points, or 2.5%, to 639.55.

All but one of the 12 TSX subgroups were in the red by the closing bell, weighed most by energy, down 5.2%, while real-estate skidded 4.8% and consumer discretionary stocks listed lower 4.5%.

Only a 2.3% surge by gold stocks prevented unanimity.

ON WALLSTREET

The Dow Jones Industrial Average tumbled below the key 30,000 level on Thursday as investors worried the Federal Reserve’s more aggressive approach toward inflation would bring the economy into a recession.

The 30-stock index staggered 741.46 points, or 2.4%, to finish the day’s trading at 29,927.07, after the Fed announced its largest rate hike since 1994, but reversed those gains and then some on Thursday, tumbling to the lowest level since January 2021.

While 30,000 isn’t necessarily a technical level for the Dow, these round 1,000-point thresholds are seen by many on Wall Street as key psychological levels for the market.

The S&P 500 sank 123.22 points, or 3.3%, to 3,666.77.

The NASDAQ Composite retreated 453.06 points, or 4.1%, to 10,646.10, and touched its lowest level since September 2020.

It's been a rough week, the Dow finishing Thursday’s session down 5.2%, while the S&P subsided 6.6% and the NASDAQ gave up 6.7% each, for the week and well below record levels.

Home Depot, Intel, Walgreens, JPMorgan, 3M, and American Express hit new 52-week lows amid growing recession fears while tech shares dropped after a bounce on Wednesday. Amazon, Apple and Netflix all slid more than 3%. Tesla docked more than 8%, and Nvidia shed 6%.

Travel stocks also took a leg lower. United and Delta tumbled 7% each, while cruise line stocks Carnival, Norwegian Cruise Line and Royal Caribbean plummeted 10%.

All major sectors declined on Thursday, led by consumer discretionary and energy, down 5% each. Healthcare, which is often seen as recession-proof, also dipped by about 2%.

Staples stocks, known for their steady cash flows that could hold up during recessions, traded into the green or near the flatline. Procter & Gamble gained 1.6%. Colgate-Palmolive and Walmart were slightly higher.

Data out Thursday further indicated a dramatic slowdown in economic activity. Housing starts dropped 14% in May, topping the 2.6% decline expected by economists polled by Dow Jones.

Treasury prices gained strength, thus lowering yields to 3.25% from Wednesday’s 3.28%. Treasury prices and yields move in opposite directions.

Oil prices recovered $1.52 to $116.83 U.S. a barrel.

Gold prices popped $37.80 to $1,857.40 U.S. an ounce.