Equities in Canada’s largest market opened sharply lower on Thursday, dragged down by technology stocks after a stronger-than-expected U.S. inflation data stoked worries that the Federal Reserve will continue on its aggressive
rate-hiking spree.
The TSX Composite continued in reverse, staggering 211.48 points, or 1.2%, to 17,994.80.
The Canadian dollar slumped 0.44 cents to 71.94 cents U.S.
Canada's Competition Bureau has launched an investigation into Royal Bank of Canada over allegations that the country's largest lender had misled customers on its commitments regarding climate action.
Meantime, shares in Canada’s biggest bank handed back 89 cents to $117.78.
ON BAYSTREET
The TSX Venture Exchange flopped 9.69 points, or 1.7%, to 575.32.
All but one of the 12 TSX subgroups lost ground in the first hour of the trading day, with gold plunging 4.7%, materials sliding 3.2%, and information technology losing 2.5%.
ON WALLSTREET
Stocks fell Thursday morning and the S&P 500 fell to its lowest level since 2020 after a key consumer inflation report came in hotter than expected, signaling that the Federal Reserve will likely continue with aggressive interest rate hikes.
The Dow Jones Industrials faded 145.13 points soon after the open to 29,065.72.
The S&P 500 declined 32.8 points to 3,544.23.
The NASDAQ Composite dropped 160.68 points, or 1.5%, to 10,256.41.
Shares of large consumer companies led the losses as the inflation reading stoked fears that spending will take a hit. Amazon fell more than 3% while Home Depot and Costco slipped 2.5%.
The reversal in early gains came after the September consumer inflation report was higher than economists expected. The consumer price index increased 0.4% for the month, more than the 0.3% estimate from Dow Jones. On an annual basis, inflation was up 8.2%.
Delta Air Lines shares rose in morning trading after issuing a sunny outlook for business and leisure travel, particularly for international trips.
Going forward, investors will be watching the start of earnings season. On Friday, major banks JPMorgan Chase, Wells Fargo, Morgan Stanley and Citigroup all report results.
Treasury prices fell sharply, raising yields to 3.99% from Wednesday’s 3.90%. Treasury prices and yields move in opposite directions.
Oil prices dipped 43 cents to $86.84 U.S. a barrel.
Gold prices shrank $22.50 to $1,655.00 U.S. an ounce.
