Canada's main stock index slid on Tuesday, weighed by losses in commodity-linked stocks and worries of an economic slowdown, while Canadian Western Bank surged on a brokerage upgrade.
The TSX stumbled 228.25 points, or 1.1% to conclude trading Tuesday at 19,739.70.
Canadian Western surged 80 cents, or 3.3%, to $25.06.
Energy stocks, however, tumbled as Baytex Energy gave back 22 cents, or 4.8%, to $4.36, while Precision Drilling dropped $2.35, or 3.9%, to $58.56.
Materials also declined, with Algoma Steel shedding 57 cents, or 5.8%, to $9.31, while Nutrien Ltd. fell $3.20, or 4.2%, to $73.87.
Health-care stocks also took a wallop, with Canopy Growth dipping seven cents, or 5.7%, to $1.16, while Tilray Inc. lost eight cents, or 3.1%, to $2.47.
ON BAYSTREET
The TSX Venture Exchange dipped 9.89 points, or 1.6%, to 596.96.
All 12 TSX subgroups lost ground, energy losing 2%, materials, down 1.7%, and health-care, off 1.2%.
ON WALLSTREET
The Dow Jones Industrial Average fell on Tuesday as Wall Street considered the likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling.
The blue-chip index came out on the minus side 50.49 points to conclude Tuesday at 33,042.85.
The S&P 500 eked ahead 0.15 points to 4,205.60.
The NASDAQ jumped 41.74 points to 13,017.43.
Markets were shuttered Monday for the Memorial Day holiday.
President Joe Biden and House Majority Leader Kevin McCarthy reached an agreement to raise the debt ceiling and avoid a default over the weekend, with Congress set to vote on the legislation as early as Wednesday. Lawmakers have not signaled that they intended to return to Capitol Hill early to work on the deal. Both Republican and Democratic support is needed for the bill agreement to pass.
The agreement comes just days before the so-called “X date” on June 5, which is the earliest date the Treasury Department has signaled the U.S. could default on debt obligations. The initial compromise was first announced on Saturday evening.
The NASDAQ was helped by a nearly rally in Nvidia. The artificial intelligence-related stock reached a $1-trillion market cap — an elite marker surpassed by just a handful of stocks — at one point on Tuesday, as shares continued to rally following its strong earnings report last week. Nvidia shares leaped $10.57, or 2.7%, to $400.03.
Despite some near-term headwinds, Tesla looks “set up well” for share gains over the long run, according to Barclays. Tesla shares rocketed $7.24, or 3.8%, to $200.41.
Even amid demand constraints and recent price cuts introduced by the company, Levy views the Model 1 and Cybertruck as “key steps forward” in Tesla’s share expansion opportunity. These models should offer Tesla access to the pickup market and lower price tiers, he wrote.
Prices for the 10-year Treasury popped, lowering yields to 3.68% from Friday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices sank $2.92 to $69.75 U.S. a barrel.
Gold prices added $15.60 to $1,959.90 U.S. an ounce.
