FX.co ★ TSX Reverses Early Session Losses

The S&P/TSX Composite Index, after initial gains, declined by approximately 1.2%, dropping below the 30,000 threshold on Thursday afternoon. This shift occurred as investors reevaluated the prospects of rising US interest rates and adjusted the pricing of high-valued artificial intelligence stocks. The unexpectedly robust BLS employment report solidified the belief that the Federal Reserve will likely maintain its current policy stance in December, undermining any immediate expectations for a rate cut and impacting risk sentiment. Nvidia, having opened with a 5% rise, saw its stock decrease following the release of its results. Despite surpassing estimates and confirming the persistent demand for AI infrastructure, management did not provide assurance regarding the materialization of substantial partner agreements, prompting renewed caution about datacenter investment. Leading the downturn, Celestica's shares plummeted over 7%, while key mining companies such as Agnico Eagle, Barrick Gold, Wheaton Precious Metals, and Franco Nevada experienced declines ranging from 3.3% to 4.3%, as the repricing of risks affected both the commodity and technology sectors.