Canada’s main stock index fell short by the close on Wednesday after the Bank of Canada raised its overnight lending rate as expected but signaled a pause in its hiking cycle and added economic growth would stall through the middle of the year.
The TSX lost 29.95 points to conclude Wednesday at 20,599.60.
The Canadian dollar let go of 0.07 cents at 74.70 cents U.S.
Industrials were looking down Wednesday, with Canadian National Railway down $7.62, or 4.6%, to $158.29, while Canadian Pacific lost $3.96, or 3.7%, to $102.98.
Energy stocks faltered, too, as Birchcliff Energy lost 35 cents, or 3.8%, to $8.86, while Peyto Exploration moved back 46 cents, or 3.4%, to $13.13.
Among utilities, Boralex backpedaled 88 cents, or 2.2%, to $38.62, while Innergex Energy docked 30 cents, or 1.9%, to $15.87.
Gold stocks tried to right the ship, as Centerra Gold gained 40 cents, or 4.8%, to $8.70, while Torex Gold hiked 54 cents, or 2.9%, to $18.97.
Among materials, Endeavour Silver gained 23 cents, or 4.8%, to $5.0, while Fortuna Silver Mines picked up 40 cents, or 7.8%, to $5.53.
The BoC hiked its benchmark overnight interest rate by 25 basis points to 4.5%, its highest level in 15 years, and said it would likely pause to measure the cumulative effect of previous increases.
The TSX Venture Exchange erased 0.41 points to 622.62.
Seven of the 12 subgroups were lower, with industrials sinking 2.2%, and energy, off 1.2%, and utilities, surrendering 0.4%.
The five gainers were led by gold, brighter by 2.1%, information technology, clicking higher 1.9%, and materials, better by 1.1%.
The NASDAQ closed lower Wednesday for a second day as investors studied the latest batch of corporate earnings, and assessed how the largest companies are faring amid rising rates and mounting recession fears.
The Dow Jones Industrials nosed up 9.88 points to 33,743.84.
The S&P 500 inched back 0.73 points to 4,016.22.
The NASDAQ Composite gave back 20.91 points to 11,313.86.
Technology stocks languished for most of the session after Microsoft’s lackluster guidance further fueled growth concerns. The software giant
closed slightly lower. Boeing finished slightly higher despite a top-and bottom-line miss.
Investors bought stocks heading into the reporting period, anticipating better-than-expected prints as companies reset and lowered expectations. But reports so far across sectors have mostly dashed those hopes as many companies share dismal outlooks, he said.
Investors are bracing for more high-profile corporate earnings this week as fears of a recession persist, with Tesla and IBM among the companies slated to post numbers after the bell. Through Wednesday’s open, more than 19% of S&P 500 companies have reported fourth-quarter earnings, with 68% of them posting stronger-than-expected results.
As of Wednesday’s close, all three major averages are higher for the week, with the NASDAQ up 1.6%. The S&P and Dow have gained 1.1% each.
Prices for the 10-year Treasury gained a slight bit of ground, lowering yields to 3.45% from Tuesday’s 3.46%. Treasury prices and yields move in opposite directions.
Oil prices gained back 37 cents to $80.50 U.S. a barrel.
Gold prices regained $11.70 to $1,947.10 U.S. an ounce.
Dow Moves Doggedly into Green, Other Indexes Cut Losses