Stocks throughout North America ended Tuesday on the downside, with resources taking the brunt of sellers’ wrath, on the eve of another move by the Bank of Canada.
The TSX Composite Index tumbled 303.73 points, or 1.3%, to end Tuesday at 23,042.45
The Canadian dollar skidded 0.29 cents at 73.79 cents U.S.
In corporate news, industrial valves manufacturer Velan signed a service agreement with GEH SMR Technologies Canada to supply products and services for a small modular reactor project with Ontario Power Generation. Shares in Velan took on 15 cents, or 2.4%, to $6.30.
Materials and gold bore most of the downward load, with First Quantum Minerals shedding $2.34, or 13.8%, to $14.63, while Capstone Mining dumped $1.08, or 11.2%, to $8.59. Aya Gold & Silver swooned $1.14, or 7.6%, to $13.83, while Seabridge Gold demurred $1.42, or 6%, to $22.29.
In energy stocks, IPCO reversed $2.05, or 10%, to $18.40, while Baytex Energy floundered 35 cents, or 7.3%, to $4.45.
Communications tried to right the ship, with TELUS acquiring 43 cents, or 2%, to $22.20, while BCE gathered 66 cents, or 1.4%, to $47.87.
In the health-care field, Bausch Health Companies gained 24 cents, or 3%, to $8.23, while Sienna Senior Living captured 18 cents, or 1.2%, to $15.70.
The Bank of Canada is set to hold its policy meeting on Wednesday, in which it is widely expected to lower its policy rates by 25 basis points for the third time in a row.
On the economic slate, the Markit Canada Manufacturing PMI registered below the critical 50.0 no-change mark during August for a sixteenth successive month. However, by rising to 49.5, from 47.8 in July, the PMI signaled only a marginal deterioration in operating conditions that was the weakest since March.
ON BAYSTREET
The TSX Venture Exchange deleted 12.82, or 2.3%, to 555.08.
All but two of the 12 subgroups were lower on the day, with materials descending 4.3%, gold dumping 3%, and energy off 2.9%.
Only communications and health-care held out against the negative tide, health-care growing 0.5%, while communications added 0.5%.
ON WALLSTREET
Stocks tumbled Tuesday as technology names struggled and new economic data rekindled fears around the health of the economy.
The Dow Jones Industrial index stumbled 626.15 points, or 1.5%, to close Tuesday at 40,936.93.
The S&P 500 slid 119.47 points, or 2.1%, to 5,528.93.
The NASDAQ collapsed 577.33 points, or 3.3%, to 17,136.30.
Stocks felt downward pressure as Nvidia, the high-flying artificial intelligence darling that has captured investor attention for more than a year, dropped more than 8%. It was one of several semiconductor stocks including Micron, KLA and Advanced Micro Devices seeing declines in the session.
Tuesday’s moves kick off the new trading month after the three major averages finished August with gains. U.S. markets were closed Monday due to the Labour Day holiday.
Investors will get their first major economic report of the month on Friday, when the U.S. government releases the August jobs report. Wall Street will also have to contend with seasonal headwinds, as September has been the worst month on average for the S&P 500 over the last 10 years.
Prices for the 10-year Treasury faltered, raising yields to 3.84% from Friday’s 3.91%. Treasury prices and yields move in opposite directions.
Oil prices skidded $3.24 to $70.31 U.S. a barrel.
Gold prices settled $3.70 to $2,523.90