Canada's main stock index dropped to over a three-week low on Tuesday after a broad selloff as data showed that U.S. inflation had slowed down less than anticipated in January, reducing hopes for an early interest rate cut by the Federal Reserve.
The TSX Composite parted ways with 482.33 points, or 2.3%, to close Tuesday at 20,584.97.
The Canadian dollar fell 0.62 cents at 73.69 cents U.S.
Tech stocks were hit particularly hard, with Shopify bruised $14.72, or 12.3%, to $105.16, while Dye & Durham fell $1.30, or 9.6%, to $12.28.
Gold also took it on the chin, with Centerra Gold losing 70 cents, or 10.3%, to $6.13, while Eldorado Gold handed over $1.14, or 7.2%, to $14.75.
In materials, SSR Mining was stung $7.03, or 53.8%, to $6.05, while Silvercrest Metals faded 68 cents, or 9%, to $6.91.
ON BAYSTREET
The TSX Venture Exchange retreated 11.72 points, or 2.1%, to 537.20
All 12 subgroups were in the red, with information technology tumbling 4.6%, gold falling 4.3%, and materials, off 3.6%.
ON WALLSTREET
Stocks dropped on Tuesday after hotter-than-expected inflation data for January spiked Treasury yields and raised doubts that the Federal Reserve would be able to cut rates several times this year, a key part of the bull case for the equity market.
The Dow Jones Industrials faltered 524.89 points, or 1.4%, to close a disastrous Tuesday at 38,272.49, its biggest drop since March 2023, when it fell 1.6%.
The S&P 500 index slid 68.68 points, or 1.4%, to 4,953.16.
The NASDAQ index let go of 286.95 points, or 1.8%, to 15,655.60.
In corporate news, JetBlue Airways spiked 20% after activist investor Carl Icahn reported a nearly 10% stake in the airline. Toymaker Hasbro lost 3% after missing analyst expectations for the fourth quarter. Shares of Avis Budget Group slipped 22% on the back of disappointing fourth-quarter revenue.
The consumer price index rose 0.3% in January from December. CPI was up 3.1% on an annual basis. Economists polled by Dow Jones expected CPI to have increased by 0.2% month over month in January and 2.9% from a year earlier.
Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.
Prices for the 10-year Treasury withered, raising yields to 4.32% from Monday’s 4.19%. Treasury prices and yields move in opposite directions.
Oil prices jumped 82 cents to $77.74 U.S. a barrel.
Gold prices lost $27.40 to $2,005.50.
