Canada's main stock index opened lower on Monday, dragged down by weakness in resource-linked shares and fears of aggressive policy tightening by the Federal Reserve after data suggested red-hot U.S. inflation was yet to peak.
The S&P/TSX plummeted 454.42 points, or 2.2%, to open the day and the week at 19,820.40.
The Canadian dollar lost 0.42 cents to 77.73 cents U.S.
Rogers Communications’ Loretta Rogers who
served as a corporate director for over 50 years and the wife of company's late founder Ted Rogers, died on Saturday at the age of 83.
The Rogers couple helped build the communications company into the behemoth it became. Rogers shares opened Monday down 89 cents, or 1.5%, to $60.40.
Canada will announce a multi-million-dollar investment on Monday to make the Jansen potash mine run by the globe's largest listed miner, BHP Group, "the cleanest and most sustainable in the world," a government source said.
ON BAYSTREET
The TSX Venture Exchange retreated 25.95 points, or 3.7%, to 678.75.
All 12 TSX subgroups were negative in the first hour, with energy sputtering 4.1%, materials diving 2.6%, and information technology tumbling 2.3%.
ON WALLSTREET
Stocks tumbled Monday, pushing the S&P 500 back into bear market territory, as the major averages came off their worst week since January.
The Dow Jones Industrials handed back 610.01 points, or 1.9%, to 30,782.78.
The S&P 500 darted lower 95.75 points, or 2.4%, to 3,805.11.
The S&P 500 hit a new intraday low for the year and was off nearly 21% from its record, back in bear market territory after trading there briefly on an intraday basis about three weeks ago. The benchmark now sits more than 20% from its January record close. If it finishes there on Monday, it will confirm a bear market to many on Wall Street.
Monday’s selloff was broad based, with roughly 26 New York Stock Exchange-listed stocks trading lower for every advancer.
Shares of Boeing dropped 5%, Salesforce more than 4% and Chevron more than 3%, dragging down the Dow. Beaten-up tech shares also took a hit with Amazon, Netflix and Nvidia all down at least 4% as the Nasdaq touched a fresh 52-week low. Just four S&P 500 stocks traded in the green.
The Federal Reserve is expected to announce at least a half-point rate hike on Wednesday. The Fed has already raised rates twice this year, including a 50-basis-point (0.5 percentage point) increase in May in an effort to stave off the recent inflation surge. Though some economists after the hot CPI report believed the Fed could even raise rates by 0.75% this week.
The NASDAQ Composite plunged 326.84 points, or 2.9%, to 11,340.02.
Treasury prices swooned, raising yields to 3.28% from Friday’s 3.16%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.15 to $119.52 U.S. a barrel.
Gold prices withered $44.10 to $1,831.40 U.S. an ounce.
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