The S&P/TSX Composite Index experienced a notable decline of nearly 1%, dropping below the 30,000 benchmark on Friday. This movement extended its most significant daily loss since April, effectively nullifying the gains made earlier in the week when the index had previously reached record highs. The downturn was influenced by hawkish remarks from US Federal Reserve officials, which dampened expectations for a potential rate cut in December. Several policymakers expressed caution over further easing, citing persistent inflation and a robust labor market as factors for restraint.
The technology sector led the downturn, with Shopify's share price falling over 2% as investors reconsidered the high valuations of companies linked to artificial intelligence. In the mining sector, companies sensitive to gold prices, such as Agnico Eagle, Barrick, Wheaton Precious Metals, and Franco-Nevada, saw their stocks decline between approximately 1.3% and 2.2%, correlating with a softening in bullion prices and reduced safe-haven demand. Significant banks, including RBC, TD, and BMO, also experienced drops, with each share decreasing by more than 1%.
On the economic data front, wholesale sales increased by 0.6% in September, while manufacturing sales rose by around 3.3% during the same period.
