Canada’s main stock index fell from record levels on Wednesday as a technology sector rout hit Wall Street, though gains in oil and defensive shares helped limit overall market losses.
The TSX Composite Index shed 104.2 points to move into noon hour EDT Wednesday at 22,891.19.
The Canadian dollar eased 0.1 cents to 73.05 cents U.S.
In corporate news, Celestica shares dropped $5.55, or 6.4%, to $80.95 after the electronics company amended its existing senior secured credit agreement and upsized its credit facility to $1.50 billion.
Elsewhere, Storagevault Canada agreed to acquire two adjacent properties in southern Ontario from two arm’s length vendors for $71.5 million. Storagevault shares inched up 10 cents, or 2.1%, to $4.78.
On the economic beat, foreign investment in Canadian securities surpassed Canadian investment in foreign securities for a second consecutive month in May. Non-resident investors acquired $20.9 billion of Canadian securities. Meanwhile, Canadian investors purchased a moderate $3.9 billion of foreign securities.
ON BAYSTREET
The TSX Venture Exchange lost 5.39 points to 593.75.
Seven of the 12 TSX subgroups lost ground midday, with information technology thumped 2.3%, industrials off 0.7%, and materials, dropping 0.5%.
The five gainers were led by communications, ahead 1.1%, health-care, up 0.5%, and real-estate, better by 0.4%.
ON WALLSTREET
The S&P 500 and NASDAQ Composite retreated on Wednesday as the rotation out of high-flying technology shares continued.
The Dow Jones Industrials climbed 191.82 points to 41,146.30, lifted by a gain of more than 3% in UnitedHealth following a Wall Street upgrade on the back of its strong earnings report.
The much-broader index fell 68.14 points, or 1.2%, to 5,599.06.
The NASDAQ was bruised 468.11 points, or 2.5%, to 18,046.23.
Meta tumbled around 4%, while Apple, Netflix and Microsoft all dropped more than 1%. That offered the latest sign of investors pulling back on megacap technology after the group’s monster run this year as artificial intelligence captured the market’s interest.
Semiconductor stocks struggled in particular within the tech sector following a Bloomberg News report that the Biden administration is considering tougher trade restrictions if companies continue granting China access to U.S.-made technology.
Nvidia plummeted 5.5%, and U.S.-listed shares of Taiwan Semiconductor lost around 2%.
Prices for the 10-year Treasury listed lower, raising yields to 4.17% from Tuesday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices recovered $1.89 at $82.65 U.S. a barrel.
Gold prices declined 40 cents to $2,467.40