Canada's main stock index hit its lowest in over three weeks Friday after a weak jobs reading in the United States added to recession fears, while higher gold prices lifted mining stocks.
The TSX Composite Index hurtled lower 611.01 points, or 2.7%, to pause Friday for noon hour EDT at 22,112.20. The index was set to log its worst week since September 2023.
The Canadian dollar progressed 0.17 cents at 72.20 cents U.S.
In corporate news, resources companies like pipeline operator Enbridge and oil producer Imperial Oil are set to report their quarterly figures before the opening bell on Friday. Enbridge shares lost 20 cents to $51.95, while shares in IMO faded $2.85, or 3%, to $93.11.
Magna International missed analysts' estimates for second-quarter results, hurt by production being stopped for certain vehicles and lower number of automobiles it assembled. Magna shares sagged $3.23, or 5.4%, to $56.40.
Markets in Toronto will be closed Monday for Civic Day.
ON BAYSTREET
The TSX Venture Exchange tumbled 19.15 points, or 3.3%, to 553.49.
All 12 TSX subgroups were lower, weighed most by information technology and energy, each down 4.5%, and health-care, off 3.1%.
ON WALLSTREET
Stocks fell sharply on Friday with the S&P 500 headed for its worst session in roughly two years, as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.
The Dow Jones Industrial index jettisoned 824.88 points, or 2%, to 39,523.09.
The much-broader index slid 119.22 points, or 2.2%, to 5,327,49.
The NASDAQ hesitated 443.72 points, or 2.6%, to 16,747.20.
Friday’s selloff pushed the NASDAQ into correction territory — down more than 10% from an all-time high set nearly a month ago. The NASDAQ-100, which is made up of the 100 largest names in the Composite, was deeper in a correction, trading 11% below its 52-week high. The S&P 500 was 6% below its all-time highs and Dow 4% below its peak.
Intel, meanwhile, cratered 29% after announcing weak guidance and layoffs. Nvidia lost more than 5.5%, following a 6% loss a day before.
Stocks with the most to lose from a recession also declined. Bank of America lost 3%, and Caterpillar shares were also lower. The 10-year Treasury yield fell to its lowest since February as investors flooded into bonds for safety.
Friday’s stock pullback would have added to a steep selloff from the previous session. The Dow and S&P 500 each fell more than 1% on Thursday, while the NASDAQ slid 2.3%. Those declines sent ripples around the world, with the Japanese Nikkei losing 5.8% overnight.
July job growth in the U.S. slowed more than expected, while the employment rate rose to the highest since October 2021. Non-farm payrolls grew by just 114,000 last month, the Labor Department reported, a slowing from 179,000 jobs added in June and below the 185,000 expected by economists polled by Dow Jones. The unemployment rate increased to 4.3%.
Prices for the 10-year Treasury popped, with yields falling to 3.82% from Thursday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices slumped $2.49 at $73.82 U.S. a barrel.
Gold prices moved lower $7.40 to $2,473.40.
