The Toronto Stock Exchange (TSX) has fallen 9.45% from the record high that was set on
March 29, putting the benchmark Canadian index into correction territory.
The TSX lost 633.6 points yesterday (May 9) to close at 19,999.69. It’s the first time the index
has closed below 20,000 points since June of last year.
With yesterday’s plunge, the TSX has now dropped 9.45% from its all-time high on March 29. A
drop of 10% is commonly defined as a market correction.
The Toronto exchange has declined in recent days along with other stock markets around the
world as investor fears concerning the outlook for economic growth and inflation increase.
It’s been a sharp reversal for Canadian stocks as central bank efforts to contain inflation,
Russia’s invasion of Ukraine, and China’s attempt to halt the spread of COVID-19 cast a cloud
over the global economy.
A little more than a month ago, the TSX was sitting at an all-time high and outpacing U.S. stock
markets, fueled by high prices for oil, grains, and other commodities.
Only 26 stocks on the TSX Composite Index closed higher yesterday, while 211 fell. The selling
was worse in the U.S. as the Nasdaq index dropped 4.29% and the S&P 500 fell 3.2%. Year to
date, the S&P 500 index is down 16% and the Nasdaq has declined 27%, putting it in bear
market territory.
