The party was destined to end on Bay Street, as it did on Wall Street, as new steps were taken Wednesday the U.S. Federal Reserve to make borrowing a tad more expensive (see below)
The S&P/TSX Composite dropped 188.09 points, or 1.2%, to close Wednesday at 15,197.18
The Canadian dollar dwindled 0.84 cents to 75.34 cents U.S.
Gold stocks, in particular, were hit hard as Barrick Gold lost $1.12, or 5.4%, to $19.54, while Goldcorp got bruised 93 cents, or 5.4%, to $16.46.
Among materials issues, Teck Resources lost 40 cents, or 1.4%, to $28.25, while Agrium Inc. settled 61 cents to $134.69.
Energy concerns were battered, especially Baytex Energy, off 57 cents, or 8%, to $6.59, while Delphi Energy lost seven cents, or 4.5%, to $1.49.
ON BAYSTREET
The TSX Venture Exchange swooned 11.07 points, or 1.5%, to 741.53
All 12 TSX subgroups hurtled earthward, with gold capsizing 4.1%, materials losing 2.5%, and energy tailing off 2.2%
ON WALLSTREET
U.S. stocks fell in choppy trade Wednesday, led lower by energy and utilities, after the Federal Reserve raise rates for the second time in a decade.
The Dow Jones Industrials backed off emphatically from Tuesday’s all-time high by 118.68 points to 19,792.53, with Caterpillar leading decliners and Goldman Sachs the top advancer.
The S&P 500 dropped 18.44 points to 2,253.28, with real estate leading 10 sectors lower and information technology the only advancer
The NASDAQ composite index plummeted 27.16 points to 5,436.67
The Federal Open Market Committee raised its target range from 0.25% to 0.5% to a range of 0.5% to 0.75%. The overnight funds rate currently sits at 0.41%.
In addition to approving the much-expected increase, the FOMC also indicated a higher rate than projected back in September when it last released the quarterly look ahead. The committee now expects three rate hikes in 2017, two or three in 2018 and three in 2019.
In economic news, the Producer Price Index rose 0.4% in November, above the expected 0.1% increase. Meanwhile, November retail sales rose less than expected as households cut back on purchases of motor vehicles. Industrial production fell 0.4%
Treasury prices for the 10-year note tumbled sharply, raising yields to 2.57% from Tuesday’s 2.48%. Treasury prices and yields move in opposite directions.
Oil prices fell $2.09 to $50.89 U.S. a barrel
Gold prices fell $16.10 to $1,142.90 U.S. an ounce.
