Equities in Toronto fell hard on Tuesday, dragged down by energy stocks as the rapid spread of COVID-19 infections in India raised concerns about oil demand.
The TSX lost 127.28 points to move into noon hour Tuesday at 19,234.60
The Canadian dollar inched up 0.01 cents to 82.69 cents U.S.
Suncor Energy fell 2.7% after it proposed to develop a clean hydrogen project near Fort Saskatchewan, Alberta, to cut greenhouse gas emissions and tackle climate change.
The largest percentage gainer on the TSX was Centerra Gold, which jumped 5.0% after posting strong quarterly revenue.
Aurora Cannabis fell 5.1%, the most on the TSX, after CIBC cut target price to $9.00 from $15.00.
Ballard Power Systems was down 4.9%.
ON BAYSTREET
The TSX Venture Exchange tumbled 19.57 points, or 2.1%, to 920.77.
All but one of the 12 subgroups were down midday, with consumer discretionary stocks swooning 2.2%, real-estate slipping 1.9%, and energy sputtering 1.3%.
Only health-care held out against the tide, gaining 1.1%.
ON WALLSTREET
The market rout intensified on Tuesday as selling in higher-priced technology shares spilled over to everything from bank stocks to energy and industrials.
The Dow Jones Industrials continued its downward trend, unloading 485.1 points, or 1.4%, to 34,331.91, led by declines in Home Depot and Boeing.
The S&P 500 stayed in the red 39.66 points, or 1%, to 4,148.77, as all 11 sectors fell into negative territory.
The NASDAQ Composite was lower 33.21 points to 13,368.65.
Big Tech stocks led the market decline in morning trading but the group traded well off the lows by midday. Apple is down more than 1%, while Amazon and Netflix erased losses and turned green.
Tesla shares, the poster boy for growth stocks with lofty valuations and expectations, fell more than 4%. A Reuters report that the electric carmaker halted plans to expand its Shanghai plant into an export hub, also aided the decline.
The market will face a key test on Wednesday with the release of inflation data. Investors fear a scenario where the Federal Reserve is forced to cut back its easy money policies to curb inflation, before the economy has fully recovered from the pandemic.
Prices for 10-Year Treasurys lost ground, raising yields to 1.62% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
Oil prices regained four cents to $64.96 U.S. a barrel.
Gold prices lost $2.90 to $1,834.70 U.S. an ounce.
