Canada’s main stock index dropped to over a three-week low on Tuesday due to a broad selloff after data showed that US inflation had slowed down less than anticipated in January, reducing hopes for an early interest rate cut by the Federal Reserve.
The TSX Composite stumbled 351.45 points, or 1.7%, at noon hour Tuesday at 20,715.85.
The Canadian dollar fell 0.56 cents at 73.75 cents U.S.
Shopify fell $12.03, or 10% to $107.86, weigh the most on technology stocks, after it forecast its Q1 revenue growth rate below estimates.
Consumer discretionary stocks were dragged down by Restaurant Brands International that shed $3.10, or 2.9%, to $102.28, after its fourth-quarter results.
SSR Mining plummeted $6.80, or 52%, to $6.28, to the bottom of the index after the company announced suspension of operations at its Çöpler mine.
Meanwhile, oil and gas company Parex Resources lost $1.55, or 7%, to $20.46, after it announced an update on disrupted operations in Northern Llanos.
ON BAYSTREET
The TSX Venture Exchange retreated 6.86 points, or 1.3%, to 542.06.
All 12 subgroups were in the red, with gold falling 3.9%, information technology, down 3.8%, materials, off 3.1%.
ON WALLSTREET
Stocks dropped on Tuesday after hotter-than-expected inflation data for January spiked Treasury yields and raised doubts that the Federal
Reserve would be able to cut rates several times this year, a key part of the bull case for the equity market.
The Dow Jones Industrials swooned 422.12 points, or 1.1%, to move into Tuesday at 38,375.26, in its biggest drop since March 2023, when it fell 1.6%.
The S&P 500 index slid 51.67 points, or 1%, to 4,970.17.
The NASDAQ index jettisoned 189.04 points to 15,753.51.
In corporate news, JetBlue Airways spiked 12% after activist investor Carl Icahn reported a nearly 10% stake in the airline. Toymaker Hasbro lost 6% after missing analyst expectations for the fourth quarter. Shares of Avis Budget Group slipped 20% on the back of disappointing fourth-quarter revenue.
The consumer price index rose 0.3% in January from December. CPI was up 3.1% on an annual basis. Economists polled by Dow Jones expected CPI to have increased by 0.2% month over month in January and 2.9% from a year earlier.
Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.
Prices for the 10-year Treasury withered, raising yields to 4.28% from Monday’s 4.19%. Treasury prices and yields move in opposite
directions.
Oil prices jumped $1.06 to $77.98 U.S. a barrel.
Gold prices lost $23.50 to $2,009.50.