Markets in Canada’s largest centre plunged first thing Thursday, amid a broad selloff as signs of persistent inflation in the United States pushed back hopes of an interest rate cut in the early half of the year.
The TSX Composite retreated 177.85 points to open Thursday at 21,695.87.
The Canadian dollar slipped 0.05 cents at 72.91 cents U.S.
Teck Resources missed first-quarter profit estimates on Thursday, pulled down partly by lacklustre steelmaking coal sales volumes and lower zinc prices. Teck shares hiked $3.66, or 5.9%, to $65.89.
Rate-sensitive technology stocks were dragged down by a fall in Hut 8 Mining of 29 cents, or 2.4%, to $12.02, and a descent in crypto rival Bitfarms of six cents, or 2.1%, to $2.76, tracking a 1.1% decline in Bitcoin. If the declines hold, the sector faces its worst day in over a month.
Elsewhere, Mullen Group sank to the bottom of the index with a fall of $1.37, or 9.5%, to $13.06, after the logistics provider's first-quarter results missed analysts' estimates.
Statistics Canada reported the number of employees receiving pay and benefits from their employer decreased by 17,700 (-0.1%) in February, following an increase of 35,700 (+0.2%) in January. On a year-over-year basis, payroll employment was up by 154,700 (+0.9%) in February.
ON BAYSTREET
The TSX Venture Exchange lost 2.41 points to 572.24.
All but two of the 12 TSX subgroups were in the red in the first hour, with health-care pointed downward 1.5%, real-estate down 1.4%, and communications off 1.3%.
The two gainers were gold, prospering 0.9%, and materials, stronger by 0.4%.
ON WALLSTREET
Stock futures fell sharply Thursday after the latest U.S. economic data showed a sharp slowdown in growth and pointed to persistent inflation.
The Dow Jones Industrials withered 644.09 points, or 1.7%, mid-morning Thursday to 37,816.23.
The S&P 500 index swooned 65.02 points, or 1.3%, to 5,006.81.
The NASDAQ Composite stumbled 247.87 points, or 1.6%, to 15,464.88.
U.S. gross domestic product expanded 1.6% in the first quarter, the Bureau of Economic Analysis said. Economists polled by Dow Jones forecast GDP growth would come in at 2.4%.
Following the GDP print, traders moved down expectations for an easing of Federal Reserve monetary policy. Traders now forecast just one interest rate cut this year,
The lackluster GDP added further pressure to an already-tense market contending with concerns over a pullback in growth among technology earnings.
Meta plunged 15% in premarket trading after the social media giant issued light revenue guidance for the second quarter. That would be the stock’s biggest one-day decline since October 2022. International Business Machines also fell 8% after missing consensus estimates for first-quarter revenue.
Meta’s report raises concern ahead of other big tech releases. Microsoft and Alphabet are slated to post earnings after the close Thursday.
Prices for the 10-year Treasury slumped yields to 4.72% from Wednesday’s 4.64%. Treasury prices and yields move in opposite directions.
Oil prices fell 51 cents to $82.30 U.S. a barrel.
Gold prices dulled $1.60 to $2,336.80 U.S. an ounce.
