Canada’s main stock index declined on Tuesday for the third straight session, tracking a selloff in the broader market after U.S. Treasury yields rose to a fresh 16-year high on worries that the central bank will hold interest rates higher for longer.
The TSX Composite came off its lows of the day, but was still negative 156.26 points, to conclude Tuesday at 19,020.92.
The Canadian dollar skidded 0.16 cents at 72.95cents U.S.
Real-estate proved the biggest anchor around the neck of the TSX, as units of Allied Properties REIT dived 73 cents, or 4.1%, to $16.95, while First Capital REIT units declined 48 cents, or 3.7%, to $16.95.
In techs, Bitfarms lost 18 cents, or 12%, to $1.32, while Hut 8 Mining shares lost 23 cents, or 8.4%, to $2.52.
Financials sank, too, with Laurentian Bank off 90 cents, or 3.2%, to $27.58, while CI Financial dropped 50 cents, or 3.3%, to $14.57.
Gold tried to prop things up, with Iamgold progressing 15 cents, or 5.4%, to $2.91, while Equinox Gold advanced 20 cents, or 3.6%, to $5.79.
In consumer staples, Alimentation Couche-Tard surged 89 cents, or 1.3%, to $71.03, while Loblaw grabbed $1.13, or 1%, to $117.25.
Energy stocks also gained, however slightly, as Nuvista Energy pushed up 26 cents, or 2.1%, to $12.76, while Enerplus took on 29 cents, or 1.3%, to $23.36.
ON BAYSTREET
The TSX Venture Exchange sagged 9.19 points, or 1.7%, to 536.26.
All but three of the 12 TSX subgroups were lower by Tuesday’s close, with real-estate and information technology each tailing off 2.1%, and financials poorer by 1.6%.
The three gainers proved to be gold, brighter by 0.8%, consumer staples, picking up 0.4%, and energy forging up 0.1%.
ON WALLSTREET
Stocks tumbled on Tuesday as Treasury yields hit their highest levels since 2007, raising concern higher interest rates would freeze the housing market and tip the economy into a recession.
The Dow Jones Industrials descended 430.97 points, or 1.3%, to close Tuesday at 33,002.38, its biggest one-day decline since March.
The S&P 500 index sagged 58.94 points, or 1.4%, to 4,229.45, to its lowest level since June.
With Tuesday’s losses, the Dow went into the red for the year. The broader S&P 500 is still up 10% for 2023.
The NASDAQ index stumbled 248.31 points, or 1.9%, to 13,059.47.
Stocks moved to their lows of the session as yields spiked further following the release of the August job openings survey, which signaled a still tight jobs market. The survey showed 9.6 million open roles in the month. Meanwhile, economists polled by Dow Jones had anticipated 8.8 million jobs.
Investors are hoping to turn the page on a disappointing September for stocks. All three major indexes closed the month and the third quarter lower. The S&P 500 alone lost nearly 5% in September.
That means key economic reports — such as last month’s payroll reports, due Friday — and the kickoff of earnings reporting season next week are back in focus.
Prices for the 10-year Treasury swooned, hiking yields to 4.80% from Monday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices regained 71 cents to $89.53 U.S. a barrel.
Gold prices faded $7.40 to $1,839.80.