Stock markets in Canada’s largest market fainted by noon hour, even after Bank of Canada Governor Stephen Poloz lifted expectations for further monetary support to help tide the economy through the coronavirus crisis.
The S&P/TSX Composite Index stumbled 143.36 points, or nearly 1%, to pause for lunch at 15,004.36.
The Canadian dollar dropped 0.08 cents to 72.49 cents U.S.
The largest percentage gainer on the TSX was the sport apparel maker BRP which gained $1.93, or 3.9%. to $51.62, followed by MTY Food Group that rose $1.37, or 6%, to $24.27.
E-commerce company Shopify fell $65.37, or 6.2%, the most on the TSX, to $991.98.
The second-biggest decliner was Air Canada, down $1.55, or 8.8%, to $16.12, after the Maple Leaf Airline announced share offerings of more than $1 billion to boost cash position amid the coronavirus crisis.
The central bank has slashed its key interest rate three times to a record low of 0.25% since the outbreak started and launched its first ever large-scale bond buying program to alleviate stress in financial markets.
ON BAYSTREET
The TSX Venture Exchange let go of 6.34 points, or 1.2%, midday Wednesday at 532.09.
All but three of the 12 TSX subgroups were down by noon hour, with information technology plunging 4.2%, gold, shedding 3.6%, and health-care, sliding 3.3%.
The three gainers were financials, up 1.7%, consumer discretionary stocks, up 1.5%, and communications, eking higher 0.2%.
ON WALLSTREET
Stocks gave back a big chunk of their earlier gains Wednesday as a drop in tech shares offset optimism about the reopening of the economy.
The Dow Jones Industrials popped 256.93 points, or 1%, to 25,252.04.
The S&P 500 stayed afloat 9.48 points to 3,001.25.
The NASDAQ, on the other hand, dipped 63.89 points to 9,276.28, as Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all slid at least 0.3%.
Stocks benefiting from people staying at home struggled on Wednesday as investors rotated out of those names. Zoom Video moved lower 8.1%, and Netflix dropped 3.3% Shopify lurched lower 9.6%, Amazon dropped 3.2%, and Teladoc Health fell 8.9%.
Bank stocks were broadly higher as investors cheered the prospects of the economy reopening. JPMorgan Chase was up 3.6% while Citigroup advanced 4.9%.
On Wednesday, the Mortgage Bankers Association reported a sixth straight weekly rise in mortgage applications. Data released Tuesday showed new home sales in April topped estimates. Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000, according to Dow Jones.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.68% from Tuesday’s 0.69%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.28 to $33.07 U.S. a barrel.
Gold prices slipped 15 dollars to $1,713.20 U.S. an ounce.
