Baystreet.ca - Canada's main stock index faded on Thursday due to losses in energy-related shares, a day after the U.S. Federal Reserve projected only one rate cut this year.The S&P/TSX Composite Index stumbled 234.55 points, or 1.1%, to greet noon EDT Thursday at 21,727.
The Canadian dollar handed over 0.15 cents to 72.72 cents U.S. BoC Governor Tiff Macklem said in a Montreal conference on Wednesday there is a limit to how far the central bank can diverge on rate cuts from the Fed, but it was not close to that limit. Macklem is expected to speak at BIS Toronto Innovation Hub Centre at 1:00 p.m. ET.
In corporate news, Bitfarms jumped 41 cents, or 12.2% to hit a more than three-month high of $3.74. The bitcoin miner announced an agreement to develop up to 120 MW of power capacity in the United States and provided a production outlook for 2025.Separtely, Riot Platforms (NASDAQ:RIOT) said Bitfarm's move to adopt a poison pill to thwart its acquisition attempt was "shareholder unfriendly" and highlighted the lack of solid corporate governance standards. Riot shares eased 12 cents, or 1.1%, in New York to $10.52 by noon hour.
ON BAYSTREET The TSX Venture Exchange dropped 5.31points to 577.94. All but one of the 12 subgroups plummeted midday, energy weighing 2.7%, gold, down 2%, and materials, off 1.5%. The lone gainer proved to be consumer discretionary, up 0.2%.
ON WALLSTREET The S&P 500 was little changed Thursday but remained near record levels as traders weighed more data showing inflation pressures may be easing.The Dow Jones Industrials plunged 229.43 points to 38,482.55.
The much-broader index edged up 0.04 points to 5,421.07. The NASDAQ gained 51.28 points to 17,659.71, to yet another new high. Broadcom (NASDAQ:AVGO) shares surged 11% after the chipmaker topped fiscal second-quarter expectations and announced a 10-for-1 stock split. On the other hand, Dave & Buster’s Entertainment shares dropped 12% after the company’s first-quarter revenue missed estimates.
May’s producer price index fell 0.2% from the prior month. Economists polled by Dow Jones expected an increase of 0.1%. That report comes a day after May’s consumer price index rose less than expected last month.Prices for the 10-year Treasury gained ground, lowering yields to 4.25% from Wednesday’s 4.33%. Treasury prices and yields move in opposite directions. Oil prices took on 32 cents to $78.18 U.S. a barrel. Gold prices fell $32.90 to $2,321.90