The S&P/TSX Composite Index in Toronto finished lower on Friday, mirroring the broader negative sentiment despite early-day resilience.
The TSX fell 0.42% to close at 31,527.39. This pulled the index back from the new all-time high it briefly touched on Thursday.
Canadian tech stocks were the biggest laggard, with companies like Shopify (SHOP) and tech service providers retreating sharply. Celestica (CLS) experienced a notable plunge, leading the sector lower.
Materials provided significant support, helping to cushion the TSX's fall. Gold and silver miners like Barrick (ABX) and Agnico Eagle (AEM) held up well, benefiting from gold prices trading near record highs, which provides a defensive hedge against global market volatility.
The large Canadian banks, which comprise a significant portion of the TSX, were resilient, ending the day flat to slightly positive. This sector is benefiting from the stable domestic interest rate environment set by the Bank of Canada.
However, the major standout on the TSX was Lululemon Athletica (LULU), which soared over 12% following a positive earnings report and the surprise announcement of a CEO transition, which investors viewed as a positive strategic catalyst.
The Canadian Dollar edged up slightly to trade at 72.63 cents US.
ON BAYSTREET
The TSX Venture Exchanged shed 3.03 points, or 0.32%, to 954.61.
ON WALLSTREET
All three major US indices finished significantly lower, with the tech-heavy Nasdaq Composite suffering the steepest decline.
The Nasdaq Composite plummeted 1.7% to close at 23,195.17, marking its worst day in three weeks.
The S&P 500 Index fell 1.1% to 6,827.41, retreating from its record close set just the day before.
The Dow Jones Industrial Average dropped 0.5% to 48,458.05, giving back a portion of the record-setting rally it enjoyed earlier in the week.
The selling pressure was largely catalyzed by chip and cloud computing companies. Broadcom (AVGO) was a major drag on the market, tumbling over 11% despite strong earnings, as its caution regarding lower margins on custom AI work spooked investors.
This followed Thursday's double-digit decline in Oracle (ORCL), underscoring a prevailing concern that the massive capital expenditures required for the AI buildout may not immediately translate into the high margins investors have come to expect.
