Canada’s main stock index closed down more than 100 points Wednesday as rising recessionary fears weighed on markets, while U.S. stock markets put in a mixed showing.
The S&P/TSX composite index ended down 116.21 points at 20,159.55 as base metals, energy and technology stocks fell.
In New York, the Dow Jones industrial average closed up 80.34 points at 33,482.72. The S&P 500 index was down 10.22 points at 4,090.38, while the Nasdaq composite was down 129.47 points at 11,996.86.
The pullback came as U.S. payroll data came in light, while a report from the Institute for Supply Management showed service sector growth slowed by more than expected.
“It’s not in recession mode yet, but it’s a negative surprise,” said Greg Taylor, chief investment officer at Purpose Investments.
“I think with that, people are starting to worry that the economy is hitting a recession and that slowdown could be hitting sooner rather than later.”
Technology stocks saw some of the biggest drops, including Shopify Inc. down almost five per cent, while some commodity stocks notched gains as gold rose.
Telecoms stocks were on the rise after Rogers Communications Inc.’s takeover of Shaw Communications Inc. was completed at the start of the week.
Taylor said many investors are waiting on more upcoming data, including the start of U.S. bank earnings next week, along with a Bank of Canada rate decision.
The Canadian dollar traded for 74.31 cents US compared with 74.37 cents US on Tuesday.
The May crude contract was down 10 cents at US$80.61 per barrel and the May natural gas contract was up five cents at US$2.16 per mmBTU.
The June gold contract was down US$2.60 at US$2,035.60 an ounce and the May copper contract was up about two cents at US$3.99 a pound.
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