Equities in Canada joined their American cousins in a mass collapse Friday, as the spectre of sky-high inflation made its presence felt south of the border.
The S&P/TSX collapsed 289.07 points, or 1.4%, to conclude the day and the week at 20,274.82. On the week, the index stumbled 516 points, or 2.48%.
The Canadian dollar lost 0.44 cents to 78.27 cents U.S.
Techs took the worst of it, with HUT 8 Mining down 13 cents, or 5.2%, to $2.39, while Shopify slumped $26.68, or 5.7%, to $444.84.
Cannabis stocks were also bowled over, with Tilray shedding 26 cents, or 5.6%, to $4.34, while Aurora Cannabis dropped nine cents, or 4.8%, to $1.78.
Consumer discretionary stocks also faltered, with BRP Inc. descending $3.85, or 4.5%, to $81.65, while Gildan Activewear fading $1.65, or 4.2%, to $37.34.
Gold stocks tried to even things out, with IAMGOLD Corp. surging 20 cents, or 7.3%, to $2.94, while New Gold grew 12 cents, or 7.3%, to $1.76.
Among materials, Endeavour Silver acquired 40 cents, or 8.6%, to $5.04, while Fortuna Silver Mining jumped 38 cents, or 8.8%, to $4.68.
On the economic front, Statistics Canada reported the economy created 40,000 jobs in May, bringing the unemployment rate down to 5.1%.
The number of Canadians who own cryptoassets is growing rapidly and efforts to regulate the sector need to start keeping pace, a senior Bank of Canada official said, noting many people may not understand the risk of investing in products like bitcoin.
The TSX Venture Exchange let go of 7.18 points, or 1%, to 704.70. Over the last five sessions, the index unloaded 15.4 points, or 2.14%,
All but two of the 12 TSX subgroups were negative to close the session, with information technology fading 3.1%, health-care failing 2.9%, and consumer discretionary stocks lower 2.7%.
The two gainers were gold, up 5.5%, and materials, better by 2%.
Stocks dropped sharply on Friday after a highly anticipated inflation report showed a faster-than-expected rise in prices and consumer sentiment hit a record low.
The Dow Jones Industrials plummeted 880.43 points, or 2.7%, to 31,392.79.
The S&P 500 handed back 116.96 points, or 2.9%, to 3,900.86.
The NASDAQ Composite plunged 414.2 points, or 3.5%, to 11,340.02.
The selloff was broad, with nearly every member of the 30-stock Dow in the red. Declining stocks outnumbered advancing ones on the New York Stock Exchange by roughly nine to one.
Apple dropped 3.9%, while Microsoft declined 4.5% and Dow, Inc. dropped 6.1%. Salesforce sank 4.6%, and Amazon fell more than 5%.
Friday’s declines mean Wall Street suffered its worst week in months. The Dow fell 4.58% for its 10th down week in the past 11. The S&P 500 and toppled 5.05% and the NASDAQ Composite lost 5.6%, for their ninth losing week in 10 and the worst week since January.
The hot inflation reading could lead traders to price in more rate hikes from the Federal Reserve later this year.
Tech stocks were under pressure as investors grappled with higher rates and a potential recession. Shares of Netflix dropped more than 5% following a downgrade from Goldman Sachs. Chip giant Nvidia slid nearly 6%.
Banks and cyclical stocks also moved lower, possibly reflecting recession fears. Shares of Wells Fargo retreated by 6%, Goldman Sachs shed more than 5%. Boeing dropped 5%.
The May consumer price index report came in at its highest level since 1981, putting pressure on the stock market. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year over year increases of 8.3% for the main index and 5.9% for the core index.
The hot inflation flamed concerns about a potential recession for the U.S. economy. Elsewhere, the preliminary June reading for the University of Michigan consumer sentiment index came in well below expectations, hitting a record low.
Treasury prices swooned, raising yields to 3.16% from Thursday’s 3.05%. Treasury prices and yields move in opposite directions.
Oil prices dropped 87 cents to $120.64 U.S. a barrel.
Gold prices leaped $23.00 to $1,879.50 U.S. an ounce.