Canada's main stock ?index opened lower on Tuesday, tracking losses on Wall Street due to a hotter-than-expected U.S. inflation reading and ?fading hopes of a U.S.-Iran ?peace deal.
The TSX Composite Index slid 41.32 points to start Tuesday at 34,097.56.
The Canadian dollar dipped 17 cents to 72.93 cents U.S.
Bank Of Montreal signed an agreement to sell transportation, vendor finance businesses to Stonepeak. BMO shares drooped $2.42, or 1.2%, to $206.96.
On the earnings front, chemicals supplier Chemtrade's first-quarter revenue and ?EBITDA missed estimates. Chemtrade shares were down $1.29, or 7%, to $17.11.
Organigram's ?second-quarter net revenue fell more than expected and missed analyst estimates. Organigram shares lost 25 cents, or 13.9%, to $1.55.
ON BAYSTREET
The TSX Venture Exchange progressed 8.26 points to 1,006.46.
Eight of the 12 TSX subgroups were lower in the first hour, weighed most by information technology, bowing 1.2%, while gold dulled 0.9%, and health-care was off 0.5%.
The four gainers were led by energy, rumbling 1.1%, consumer staples, 0.9%, and telecoms, ahead 0.3%.
ON WALLSTREET
The S&P 500 slipped on Tuesday, weighed down by higher oil prices, as traders reacted to a hotter-than-expected annual consumer price index reading for April.
The Dow Jones Industrials index tumbled 252.29 points to commence Tuesday at 49,452.18.
The much broader index toppled 43.84 points to 7,369.
The NASDAQ regressed 249.99 points, or 1.9%, to 26,024.23.
Micron Technology — which led the S&P 500 and NASDAQ Composite to fresh record highs in the previous session — reversed course from its recent gains, falling more than 3%.
The stock soared more than 37% last week and jumped more than 6% on Monday amid a memory chip rally. Alongside Micron, Advanced Micro Devices hesitated 1% and Qualcomm dropped 6%.
West Texas Intermediate futures jumped 3% to trade above $101 per barrel. Brent crude climbed 3% to above $108. Those gains built on Monday’s advance, after President Donald Trump called the month-old ceasefire between the U.S. and Iran “unbelievably weak” and said it was “on massive life support” after rejecting an “unacceptable” counterproposal from Tehran to end the war.
In its latest counteroffer, Iran has insisted on war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets and lifted sanctions.
With energy prices remaining elevated, even more attention will be given to inflation data to assess the impact of the Iran war on the U.S. economy.
In April, the consumer price index rose 0.6%, putting the annual inflation rate at 3.8%, according to the Bureau of Labor Statistics. While monthly move for headline inflation was in line with expectations, economists polled by Dow Jones were calling for a gain of 3.7% from a year earlier. That annual inflation rate was the highest since May 2023.
Prices for the 10-year Treasury dipped, raising yields to 4.45% from Monday’s 4.41%. Treasury prices and yields move in opposite directions.
Oil prices hiked $3.83 to $101.90 U.S. a barrel.
Gold prices faltered $41.80 to $4,686.90 U.S. an ounce.
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