Stocks in Canada’s largest centre added to last weeks losses, echoing weak sentiment on Wall Street, after Federal Reserve Chair Jerome Powell said U.S. monetary policy will need to be tight “for some time” before inflation is under control.

The TSX was off 37.17 points, or 0.187% at 19,836.12.

In corporate news, Constellation Software Inc. has signed a deal to buy NexJ Systems Inc., a customer management software company for the financial services industry, for about $12 million.

Under the deal, Constellation subsidiary N. Harris Computer Corp. will pay 55 cents per share for the company.

TD Bank issued a report that suggests the average price of a home in Canada could fall up to 25% from its peak seen earlier this year to the first quarter of 2023.

The report also estimates the number of home sales could fall 35% over the same time period.

The Canadian dollar edged up 0.032 cents to 76.88 cents U.S.

ON BAYSTREET

The TSX Venture Exchange handed back 2.59 points, or 0.401%, to 643.33.

Four of the 12 TSX subgroups were higher, with Energy issue up 1.70%, health-care ahead 0.74% and Utilities up 0.08%.

On the downside, Material stocks shed 1.33%, Gold issues dipped 1.19% and Industrials were off by 0.78%.

ON WALLSTREET

Stocks in the U.S finished the session lower Monday as concerns over rising rates and tighter monetary policy added to selling pressure that began last week.

The Dow Industrial Average slid 184.41 points, or 0.57%, to 32,098.99. The S&P 500 slipped 0.67% to 4,030.61 and the Nasdaq Composite slumped 1.02% to 12,017.67.

Powell’s Friday speech at the Jackson Hole central banking symposium warned of the “pain” needed to tame the fastest inflation in more than forty years, and signaled further rate hikes to come between now and the end of December.

Meme stocks GameStop (GME) was ahead 76 cents at $31.70 and AMC (AMC) was up 30 cents at 9.47.

WTI crude futures for October delivery were 54 cents higher at $93.06 per barrel.

Meanwhile in the bond market, the benchmark 10-year Treasury note surged above 3%, and the 2-year Treasury yield spiked to top 3.45%, its highest level since 2007.

October gold futures were last up $3.20 at $1,743.70.

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