Canada's main stock index opened lower on Wednesday, as Treasury yields firmed ahead of key U.S. inflation data due this week, while a slip in gold prices weighed on materials shares.
The S&P/TSX Composite Index plummeted 220.92 points, or 1%, to begin Wednesday trading at 22,044.13.
The Canadian dollar dipped 0.22 cents at 73.05 cents U.S.
In corporate news, National Bank of Canada reported a rise in second-quarter net profit, helped by strong performance in its wealth management and financial markets units. National shares surged $1.69, or 1.5%, to $114.70.
BMO Financial Group reported a fall in Q2 adjusted profit as weakness in its U.S. business hurt the Canadian lender. Shares in “The First Canadian Bank” withered $7.83, or 6%, to $123.27.
ON BAYSTREET
The TSX Venture Exchange lost 4.59 points to begin the mid-week session at 606.44.
All but one of the 12 subgroups were negative, with financials down 1.5%, energy failing 1.3%, and materials, off 1%.
The lone gainer was consumer staples, up a mere 0.1%.
ON WALLSTREET
Stocks slid Wednesday, as a pullback in artificial intelligence darling Nvidia took away one of the last few bright spots for traders.
The Dow Jones Industrial Average dumped 345.02 points to begin Wednesday at 38,507.84.
The S&P 500 slid 35.11 points to 5,270.93.
The NASDAQ swooned 79.55 points to 16,940.33.
Despite that, the major averages are on track to close the month with impressive gains. The S&P 500 is up 4.5% this month, while the Dow has advanced 1.7%. The NASDAQ has climbed 7.9% in May.
Nvidia dropped, tracking for its first negative session since posting blockbuster earnings last week. Over the past three trading days after the report was released, Nvidia has surged roughly 20%. Other megacap tech struggled in Wednesday’s session, with Tesla, Microsoft and Meta all in the red.
Outside of tech, American Airlines tumbled more than 14% after slashing its sales outlook for the second quarter. Southwest Airlines dipped around 5% in sympathy. On the other hand, Dick’s Sporting Goods jumped more than 15% on the back of strong earnings and raised guidance.
All 11 sectors that comprise the broad S&P 500 traded lower, underscoring the breadth of market weakness. Around 450 stocks in the index were lower on the day. More than two-thirds of the 30 stocks in the blue-chip Dow fell, led by UnitedHealth’s slide of more than 5%.
Prices for the 10-year Treasury collapsed, raising yields to 4.72% from Tuesday’s 4.54%. Treasury prices and yields move in opposite directions.
Oil prices ditched three cents to $79.80 U.S. a barrel.
Gold prices fell $12.30 to $2,367.
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