Investors in Canada’s largest market caught the same spooky vibes as their American cousins, who are fearful of inflation and other factors playing into the future health of their economy.
The TSX Composite Index collapsed 154.77 points to end Tuesday’s session at 21,930.83.
The Canadian dollar fell 0.14 cents to 80.07 cents U.S.
Health-care stocks were the worst off of the lot, with Tilray fading 53 cents, or 5.7%, to $8.75, while Canopy Growth lost 52 cents, or 5.3%, to $9.21.
In materials, Lithium Americas plummeted $5.03, or 10.6%, to $43.99, while Teck Resources dumped $2.84, or 5.3%, to $48.25.
In gold stocks, New Gold doffed 11 cents, or 4.8%, to $2.19, while Torex Gold Resources shed 77 cents, or 5%, to $14.72.
Consumer staples tried to lift things upward, with Loblaw climbing $3.34, or 3%, to $115.14, while George Weston tacked on $4.39, or 2.2%, to $159.03.
In communications, BCE added $1.19., or 1.7%, to $71.27, while Rogers gained 55 cents to $71.50.
Utilities made progress, too, as Capital Power jumped 46 cents, or 1.1%, to $41.00, while Hydro One added 41 cents, or 1.2%, to $34.67.
Economically speaking, Statistics Canada reported that in February, Canada’s merchandise imports were up 3.9%, following a 7.5% decline in January. Meanwhile, exports rose 2.8% in February. As a result, Canada’s merchandise trade surplus with the world narrowed from $3.1 billion in January to $2.7 billion in February.
The federal Liberals find themselves in a bind ahead of this week’s budget: the economy has recovered from the pandemic, yet Prime Minister Justin Trudeau has pledged billions in new stimulus, a political poker chip that could further torch runaway inflation.
The TSX Venture Exchange tumbled 13.87 points, or 1.5%, to 891.23.
All but three of the 12 TSX subgroups were lower by the end of the session, with health-care and materials each dropping 2.5%, while gold lost 2%.
The three gainers were consumer staples, up 1.2%, communications, up 0.9%, and utilities, ahead 0.4%.
Stocks fell on Tuesday as Federal Reserve Governor Lael Brainard indicated the central bank could take a more aggressive approach to its tightening policy.
The Dow Jones Industrials withered 280.70 to 34,641.18,
The S&P 500 slumped 57.52 points, or 1.3%, to 4,525.12.
The NASDAQ Composite cratered 328.39 points, or 2.3%, to 14,204.17.
Tech stocks were among the biggest losers of the day led by chip stocks like Nvidia, Some believe this group could be hurt the most by the Fed’s hiking campaign as investors take less risk and buy stocks with steady profits, rather than growth shares promising big earnings down the road.
Meanwhile, sectors like utilities and healthcare moved higher with drugmakers Johnson & Johnson and Pfizer rose more than 1.5% and staples like Procter & Gamble and Walmart were also higher.
Meanwhile, cruise stocks like Carnival, Norwegian Cruise Line, and Royal Caribbean added 1%.
Recessionary fears continued to spook investors on Tuesday and Deutsche Bank became the first major Wall Street bank to forecast a U.S. recession is ahead, citing the Fed getting more aggressive to fight inflation.
Also, investors continue to keep an eye on Europe, as the war between Ukraine and Russia continues. Ukraine President Volodymyr Zelenskyy pledged to pursue allegations of war crimes against Russian forces, noting that more than 300 people were killed and tortured in a suburb near the capital of Kyiv
Treasury prices faltered as yields spiked to 2.55%, from Monday’s 2.41%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.80 to $100.48 U.S. a barrel.
Gold prices moved backward $10.40 to $1,923.10 U.S. an ounce.