By Ketki Saxena
Investing.com -- At 1:00 p.m in Toronto, the S&P/TSX Composite Index was at 18,894.79 points, down 0.94% at midday. Worries of a recession continue to ramp up as central bankers double down on raising rates to tackle out-of-control inflation, even if means risking a recession. Today’s domestic GDP data, while showing a contraction for May, continues to reflect strong quarterly growth and reinforce the likelihood of a 75 basis point hike from the Bank of Canada in two weeks.
The Canadian index is down 14% so far this quarter, its worst quarterly performance since the pandemic-led sell-off in March 2020, but remains set to outperform its U.S. benchmarks, buoyed by its commodities tilt.
The S&P is set for its worst first half since 1970, the Dow for its worst half since the 2008 financial crisis, and the Nasdaq for its worst half - ever.
All TSX sectors were in the red at midday, as worries of a U.S. recession that now seems more likely than not. The Canadian index was further weighed by energy (-1.27%), with crude weakening as worries of slowing economic output globally overshadow concerns of further tightening supply. The commodity-heavy TSX has also weighed materials (-2.64%) after broad-based losses in metals, including another slide in copper.
However, healthcare (-2.82%) was the worst-performing sector on the TSX today, as Canopy Growth (TSX:WEED) (-16.82%) tanked after the pot producer announced a convertible notes exchange.
Apart from Canopy Growth, Air Canada (TSX:AC) (-7.73%), NovaGold Resources Inc (TSX:NG)-6.56%), Filo Mining Corp (TSX:FIL) (-6.20%), and Teck Resources (TSX:TECKa) (-5.00%) were today’s biggest losers.
Today’s biggest gainers included Interfor Corp (TSX:IFP) (+2.87%), Canfor (TSX:CFP) Corp (+2.82%), Brookfield Infrastructure Corp (TSX:BIPC) (+2.80%), Element Fleet Management Corp (TSX:EFN)(+2.13%), and Pason Systems Inc . (TSX:PSI) (+2.02%).