Equities in Canada’s largest centre moved sharply lower on Wednesday, dragged down by energy stocks as oil prices fell on reports of an increase in U.S. crude stockpile, while investors remained cautious ahead of the U.S. Federal Reserve's meeting.
The S&P/TSX Composite Index reached Wednesday noon down 150.9 points, or nearly 1%, to 15,682.84.
The Canadian dollar inched up 0.06 cents at 74.58 cents U.S.
The largest percentage gainer on the TSX was copper miner First Quantum Minerals, which jumped 21 cents, or 2.2%, to $9.89, followed by Dollarama, which rose $1.39, or 3%, to $48.23 after the discount retailer reported it first-quarter results.
Oilfield services and equipment provider Shawcor fell 52 cents, or 12.2%, the most on the TSX, to $3.75. The second-biggest decliner was Baytex Energy, down 7.5 cents, or 8.8%, to 77.5 cents.
ON BAYSTREET
The TSX Venture Exchange dipped 2.67 points to 562.12.
All but three of the 12 TSX subgroups were in minus territory midday Wednesday, as energy tumbled 4%, real-estate staggered 2.6%, and consumer discretionary fell 1.6%.
The three gainers were consumer staples, forging ahead 2%, while information technology clicking 0.7% higher, and communications, clearing breakeven by 0.02%.
ON WALLSTREET
The Dow Jones Industrial Average fell on Wednesday as investors awaited an update from the Federal Reserve on the state of the economy and status of any further stimulus from the central bank.
The 30-stock index came off its lows of the morning, but was still negative 149.76 points to pause for lunch at 27,122.54, as Boeing shares slid more than 6%.
The S&P 500 dropped 7.96 points to 3,199.29.
The NASDAQ added to Tuesday’s all-time high by 60.59 points to 10,014.34, as gains in major tech stocks limited the broader market’s decline.
Shares of Amazon and Apple gained more than 2% each and hit all-time highs. Alphabet took on 0.6%, and Netflix rose 0.2%.
Stocks that would benefit from the economy reopening — which have outperformed in recent weeks — fell broadly. American Airlines, United and JetBlue all dropped more than 6%. Wells Fargo slid about 6% while Citigroup lost 3.7%. JPMorgan Chase traded about 2% lower.
Wednesday’s moves come as Texas reports consecutive record surges in coronavirus-related hospitalizations while Arizona’s hospitalization rate is also rising.
The Fed is expected to keep policy unchanged, but investors will be watching for thoughts on possibly implementing yield caps and strengthening forward guidance on how long the Fed will keep current policies in place.
The Fed will be revealing its first forecast for the economy and interest rates since late last year, as it skipped a forecast in March just as the pandemic forced the abrupt shutdown of the economy
The central bank’s announcement is set for release at 2 p.m. EDT. Fed Chairman Jerome Powell is scheduled to answer questions at 2:30 p.m.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.78% from Tuesday’s 0.82%. Treasury prices and yields move in opposite directions.
Oil prices lost 30 cents to $38.64 U.S. a barrel.
Gold prices gave back 40 cents to $1,721.50 U.S. an ounce.
