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Stocks Plunge to Kick off Wednesday

Published 2024-05-29, 06:31 a/m
© Reuters.  Stocks Plunge to Kick off Wednesday
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Baystreet.ca - Canada's main stock index opened lower on Wednesday, as Treasury yields firmed ahead of key U.S. inflation data due this week, while a slip in gold prices weighed on materials shares.The S&P/TSX Composite Index plummeted 220.92 points, or 1%, to begin Wednesday trading at 22,044.13.The Canadian dollar dipped 0.22 cents at 73.05 cents U.S. In corporate news,

National Bank of Canada (TSX:NA) reported a rise in second-quarter net profit, helped by strong performance in its wealth management and financial markets units. National shares surged $1.69, or 1.5%, to $114.70. BMO (TSX:BMO) Financial Group reported a fall in Q2 adjusted profit as weakness in its U.S. business hurt the Canadian lender. Shares in “The First Canadian Bank” withered $7.83, or 6%, to $123.27.

ON BAYSTREET The TSX Venture Exchange lost 4.59 points to begin the mid-week session at 606.44. All but one of the 12 subgroups were negative, with financials down 1.5%, energy failing 1.3%, and materials, off 1%. The lone gainer was consumer staples, up a mere 0.1%.

ON WALLSTREET Stocks slid Wednesday, as a pullback in artificial intelligence darling Nvidia (NASDAQ:NVDA) took away one of the last few bright spots for traders.The Dow Jones Industrial Average dumped 345.02 points to begin Wednesday at 38,507.84. The S&P 500 slid 35.11 points to 5,270.93.The NASDAQ swooned 79.55 points to 16,940.33. Despite that, the major averages are on track to close the month with impressive gains. The S&P 500 is up 4.5% this month, while the Dow has advanced 1.7%. The NASDAQ has climbed 7.9% in May.

Nvidia dropped, tracking for its first negative session since posting blockbuster earnings last week. Over the past three trading days after the report was released, Nvidia has surged roughly 20%. Other megacap tech struggled in Wednesday’s session, with Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) all in the red.Outside of tech, American Airlines (NASDAQ:AAL) tumbled more than 14% after slashing its sales outlook for the second quarter. Southwest Airlines (NYSE:LUV) dipped around 5% in sympathy.

On the other hand, Dick’s Sporting Goods jumped more than 15% on the back of strong earnings and raised guidance.All 11 sectors that comprise the broad S&P 500 traded lower, underscoring the breadth of market weakness. Around 450 stocks in the index were lower on the day. More than two-thirds of the 30 stocks in the blue-chip Dow fell, led by UnitedHealth’s slide of more than 5%.Prices for the 10-year Treasury collapsed, raising yields to 4.72% from Tuesday’s 4.54%. Treasury prices and yields move in opposite directions. Oil prices ditched three cents to $79.80 U.S. a barrel. Gold prices fell $12.30 to $2,367.

This content was originally published on Baystreet.ca

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