Baystreet.ca - Equities throughout North America took huge downturns Thursday, declining from the lofty peaks of earlier in the week, mostly as mining and health-care stocks were bruised.
The TSX Composite Index dipped 124.41 points to 22,726.76.
The Canadian dollar swooned 0.17 cents to 72.93 cents U.S.
Mining stocks took a dip Thursday, mostly due to Hudbay Minerals (TSX:HBM), falling off 90 cents, or 7.5%, to $11.04, while Lundin Mining (TSX:LUN) shed 92 cents, or 6.1%, to $14.09.
Health-care stocks took a hit, too, with Tilray (TSX:TLRY) surrendering nine cents, or 3.5%, to $2.50, while Bausch Health (TSX:BHC) Companies handed over 32 cents, or 3.1%, to $10.12.
In the consumer discretionary field, Restaurant Brands International (TSX:QSR) lost $3.24, or 3.2%, to $99.31, while shares in MTY Food Group (TSX:MTY) declined $1.26, or 2.6%, to $46.42.
Consumer staples stocks, however, tried to balance things out, as Alimentation Couche-Tard grabbed 94 cents, or 1.2%, to $82.24, while North West Company (TSX:NWC) climbed 47 cents, or 1.1%, to $43.83.
Communications stocks also fared well, as Cogeco (TSX:CGO) hiked $1.01, or 1.6%, to$62.60, while TELUS (TSX:TIXT) took on 17 cents to $21.83.
ON BAYSTREET
The TSX Venture Exchange sank 9.32 points, or 1.6%, to 578.85.
All but two of the 12 TSX subgroups faltered Thursday, weighed most by materials, off 2.1%, while health-care lost 1.7%, and consumer discretionary faded 1.5%.
The two gainers proved to be consumer staples, up 0.4%, and communications, ahead 0.3%.
ON WALLSTREET
Stocks fell Thursday as investors continued to pare positions in high-flying technology names while taking profit on recent runs elsewhere.
The Dow Jones Industrials gave up much of their gains posted this week, dropping 533.06 points, or 1.3%, to 40,664.02
The S&P 500 index jettisoned 43.68 points to 5,544.59.
The NASDAQ dumped 125.7 points to 17,871.22.
With Thursday’s moves, the Dow was the only of the three major indexes tracking for week-to-date gains with an advance of more than 1%. The S&P 500 has slipped around 1.2% since the start of the week, while the NASDAQ Composite has slipped almost 3% amid the tech selloff.
The NASDAQ’s underperformance marks a continuation of the broader shift away from tech seen in recent days. Wall Street has dumped shares of artificial intelligence plays as the growing likelihood of a September interest rate cut from the Federal Reserve bolstered optimism in the broader market. On the other hand, that’s largely helped small-cap and more cyclical names, which are seen as bigger beneficiaries of lower borrowing costs.
This trend came to a head on Wednesday, when the NASDAQ tumbled 2.8% in its worst day since December 2022. Wednesday also marked the first session since 2001 where the NASDAQ posted a loss exceeding 2.5%, while the blue-chip Dow registered a gain. On the other hand, the Dow was propelled to its first-ever closing level above 41,000 in the session.
Thursday’s trading offers a respite from recent days, with Wall Street shares of artificial intelligence plays as the growing likelihood of a September interest rate cut from the Federal Reserve bolstered optimism in the broader market. That’s particularly helped small-cap and more cyclical names, which are seen as bigger beneficiaries to lower borrowing costs.
In corporate news, Discover Financial popped 2% after its second-quarter results topped expectations. Beyond Meat (NASDAQ:BYND) tumbled close to 11% after The Wall Street Journal reported that the meat substitute company is meeting with bondholders to begin discussions about restructuring its balance sheet.
Prices for the 10-year Treasury waned, raising yields to 4.20% from Wednesday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices slid 61 cents at $82.24 U.S. a barrel.
Gold prices retreated $13.20 to $2,446.70.