The Toronto Stock Exchange (TSX) has given up all of its 2022 gains and turned negative for
the year as a downturn in equities sweeps across markets worldwide.
Canada's benchmark stock index fell 2.14% last Friday (April 22), while each of the major U.S.
indices fell more than 2.5%. It was the biggest single-day loss for Canadian stocks since
November of last year.
As of the close of trading Friday, the TSX was down 0.17% in 2022. Formerly high-flying
technology stocks have been particularly hard hit. The TSX's technology subgroup has
plummeted 46.9% year-to-date.
Just 22 of the stocks on the TSX finished trading higher last Friday, while 217 fell. Every TSX
subgroup closed in the red as investors brace for central banks to ramp up the speed and
magnitude of rate increases to cool off inflation that is running at its highest level in more than
30 years.
Bank of Canada Governor Tiff Macklem said last week that he is “prepared to be as forceful as
needed” with interest rate increases. Also last week, U.S. Federal Reserve Chairman Jerome
Powell said a half-point interest rate hike is “on the table” for next month's policy meeting.
Those comments spooked investors and prompted a sharp selloff in stocks worldwide. Until
recently, the TSX had been one of the best performing indexes in the world this year,
outperforming U.S. indices as commodity and energy prices surged on supply constraints.
Related Stories
