Canada's main stock index fell on Monday, dragged down by material-linked companies tracking lower metal prices, while investors scaled back hopes of an early rate cut by the Federal Reserve following Chair Jerome Powell's recent comments.
The TSX Composite dropped 221.92 points, or 1.1%, to break for lunch Monday at 20,863.17
The Canadian dollar slid 0.36 cents at 73.87 cents U.S.
Amongst individual stocks, Brookfield Asset Management lost 53 cents, or 1%, to $53.68, after the company said it had raised $10 billion in the first closing of its second "Brookfield Global Transition Fund.
ON BAYSTREET
The TSX Venture Exchange fell 10.65 points, or 1.9%, to 546.30.
All12 subgroups lost ground Monday morning, as information technology slumped 2%, materials fell 1.8%, and gold doffed 1.8%.
ON WALLSTREET
Stocks fell Monday as Treasury yields spiked higher on concerns that the Federal Reserve may not cut rates as much as expected. Lackluster results from McDonald’s also dampened investor sentiment.
The Dow Jones Industrials tumbled 357.49 points to 38,296.93.
The S&P 500 index fell 22.25 points to 4,936.36.
The NASDAQ index erased 67.96 points to 15,560.99.
“We want to see more evidence that inflation is moving sustainably down to 2%,” Powell said in an interview with “60 Minutes” that aired Sunday. “Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.”
Those comments echo remarks made by Powell last week, after the Fed’s most recent monetary policy meeting. After the Fed kept interest rates unchanged, Powell said that a rate cut in March was unlikely.
Earnings season stretched on, with McDonald’s slipping 4% after posting a mixed quarter. The results heightened concerns about earnings from companies outside of the technology behemoths and whether they can deliver the rest of earnings season.
Elsewhere, Boeing slumped more than 1% on more 737 Max woes. Tesla also dragged the broader market, losing more than 5% as worries over rising competition and persistent pricing pressures for the EV giant lingered.
Prices for the 10-year Treasury plummeted, hiking yields to 4.16% from Friday’s 4.02%. Treasury prices and yields move in opposite directions.
Oil prices doffed 14 cents to $72.14 U.S. a barrel.
Gold prices dropped $15.60 to $2,038.10.
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