Stocks in Toronto dived into negative territory by the close on Wednesday, after most of the day in the sun, so to speak.
The TSX dipped 90.8 points to end Wednesday at 35,491.27.
The Canadian dollar slashed 0.33 cents to 71.49 cents.
In company news, Dollarama climbed $9.06, or 5.5%, to $174.56, after the discount retailer raised its annual comparable sales growth forecast after stronger customer traffic from budget-conscious shoppers boosted second-quarter sales.
Elsewhere, Canadian Tire shares grabbed $3.08, or 1.7%, to $189.54.
Utilities were also among the scant list of winners, with TransAlta better by 65 cents, or 4.1%, to $16.67, while Canadian Utilities gathered $1.39, or 2.8%, to $50.53.
In consumer staples, Empire Company took on $1.04, or 2.2%, to $47.45, while Metro gained $1.54, or 1.7%, to $91.38.
However, with a capital “H”, energy stocks led the charge downward, with Athabasca Oil off 90 cents, or 7.9%, to $10.55, while Strathcona
Oil sank $3.25, or 7.1%, to $42.68.
In gold stocks, NovaGold gave up 29 cents, or 2.9%, to $9.76, while I-80 Gold dipped seven cents, or 3.4%, to $2.29.
In materials, Abrasilver declined 52 cents, or 3.9%, to $12.72, while Avino Silver and Gold off 28 cents, or 3.3%, to $8.25.
European Commission President Ursula von der Leyen said the ?European Union is opening the door for Canada to become its first "associate member," a status that is not set out in the bloc's treaties.
The EU and Canada will work together across sectors including manufacturing, AI, critical minerals and energy, ?she said.
Prime Minister Mark Carney's trip follows a historic breakdown in Canada-U.S. relations after trade talks collapsed last month, sparking a
series of tit-for-tat tariff measures.
On the economic lineup, total monthly housing starts decreased 5% in August to 229,000 from July's 229,400.
In July, building permits decreased by 17.3%.
ON BAYSTREET
The TSX Venture Exchange skidded 4.88 points to 896.10.
All but three of the 12 subgroups were in the red by the close Wednesday.
The worst-off laggards were weighed by energy, sinking 3.7%, gold, tunneling 1.6%, and materials, slipping 1.2%.
The three gainers proved to be consumer discretionary stocks, ahead 1.6%, utilities, better by 1.5%, and consumer staples, up 1.1%.
ON WALLSTREET
The Dow Jones Industrial Average fell on Wednesday after the Federal Reserve hiked interest rates for the first time in three years and central bank Chairman Kevin Warsh highlighted persistent inflation.
The 30-stock index tumbled 630.97 points, or 1.2%, to 51,472.14
The S&P 500 index weakened 33.9 points to 7,551.83.
The NASDAQ Composite waned 31.5 points to 25,978.43
In a unanimous decision, the Fed raised the overnight funds rate by a quarter percentage point, bringing the target range to between 3.75% and 4%. That marked the first hike from the central bank since July 2023. The central bank also signaled another hike could come this year.
Stocks took the widely expected increase in stride at first, but then traded lower during Warsh’s press conference were he repeatedly highlighted that the inflation risk wasn’t improving.
The 10-year Treasury yield traded back above 5% as Warsh spoke with traders fearing that maybe the Fed was still behind the curve on inflation even after Wednesday’s hike.
Bank of America and Wells Fargo shares declined 3% apiece on fear higher rates could slow lending growth and the economy. American Express and Goldman Sachs shares also declined.
Intel shares traded higher, helping to stem losses for the NASDAQ, on a report that it was in talks with South Korea memory giant SK Hynix to build semiconductors in the U.S.
Prices for the 10-year Treasury collapsed, raising yields to 5.02% from Wednesday’s 5%. Treasury prices and yields move in opposite directions.
Oil prices sank $3.94 to $101.89 U.S. a barrel.
Gold prices lost $22.00 to $4,310.80 U.S. an ounce.
