The Canadian market is experiencing a notable downturn on Monday afternoon, with significant declines observed in the technology, materials, and energy sectors.
Technology stocks are under pressure due to concerns about the influence of China's cost-effective AI startup, DeepSeek, on the revenues and expansion of major industry players in the U.S. and globally.
The materials and energy sectors are suffering due to diminishing commodity prices.
Investors are turning their focus towards upcoming monetary policy announcements from the Bank of Canada, the Federal Reserve, and the European Central Bank scheduled for this week.
The benchmark S&P/TSX Composite Index has fallen by 217.34 points, or 0.85%, currently sitting at 25,251.15.
The Information Technology Capped Index has decreased by over 3.5%. Celestica Inc. (CLS.TO) has seen a substantial decline, plummeting nearly 26%. Celestica is heavily involved in AI across various applications, including energy delivery, and provides products utilized in major energy-consuming data centers.
Bitfarms Ltd. (BITF.TO) is down 12.8%. In addition, Converge Technology Solutions (CTS.TO), Sylogist Ltd. (SYZ.TO), Lightspeed Commerce Inc. (LSPD.TO), BlackBerry Ltd. (BB.TO), and Descartes Systems Group Inc. (DSG.TO) have decreased by 2 to 3.4%.
In the energy sector, Enerflex Ltd. (EFX.TO) and Terravest Capital (TVK.TO) have recorded declines of 6% and 5.2%, respectively. Arc Resources Ltd. (ARX.TO), Tourmaline Oil Corp. (TOU.TO), Baytex Energy Corp. (BTE.TO), Topaz Energy Corp. (TPZ.TO), Advantage Oil & Gas Ltd. (AAV.TO), Precision Drilling Corp. (PD.TO), and NuVista Energy Ltd. (NVA.TO) have each fallen by 2 to 3.4%.
Within the materials sector, First Majestic Silver Corp. (AG.TO), Iamgold Corp. (IMG.TO), Aya Gold & Silver Inc. (AYA.TO), Seabridge Gold Inc. (SEA.TO), Ivanhoe Mines Ltd. (IVN.TO), SSR Mining Inc. (SSRM.TO), Ero Copper Corp. (ERO.TO), MAG Silver Corp. (MAG.TO), and First Quantum Minerals Ltd. (FM.TO) have posted losses ranging from 4 to 6.2%.
