(RTTNews) - Canadian stocks tumbled on a severe bout of selling pressure on Wednesday, pushing the benchmark S&P/TSX Composite Index to a six-week low, as political uncertainty and fears of tariff war rendered the mood bearish.
Selling pressure gathered greater force past mid afternoon after the Federal Reserve signaled fewer interest rate cuts next year than earlier expected. The Fed, which cut interest rate by 25 basis points as widely expected, but the central bank's latest projections suggest rates will be in a range of 3.75 to 4% by the end of 2025 compared to the range of 3.25 to 3.5% forecast in September.
The S&P/TSX Composite Index settled at 24,557.00, losing 562.71 points or 2.24%, one of the biggest single-session drop in several months.
Mirroring widespread selling, all the sectoral indices closed in negative territory today. The biggest loser was the Information Technology Capped Index, which went down by 4.46%.
The Materials Capped Index fell 3.46%, the Healthcare index lost 2.95% and the Real Estate index closed down 2.57%. The Consumer Discretionary, Financials, Energy and Utilities indices lost 1.84 to 2.02%.
Hut 8 Corp (HUT.TO) tanked 11%. Shopify Inc (SHOP.TO) closed down 7.3%. Brookfield Asset Management (BAM.TO), Celestica Inc (CLS.TO), Docebo Inc (DCBO.TO), TerraVest Industries (TVK.TO), Dayforce (DAY.TO), Agnico Eagle Mines (AEM.TO), Constellation Software (CSU.TO) and Bombardier Inc (BBD.B.TO) lost 4 to 6.2%.
Colliers International (CIGI.TO), Wheaton Precious Metals (WPM.TO), Descartes Systems Group (DSG.TO), Kinaxis Inc (KXS.TO), TFI International (TFII.TO), West Fraser Timber (WFG.TO), goeasy (GSY.TO), Dollarama Inc (DOL.TO), Royal Bank of Canada (RY.TO) and Franco-Nevada Corporation (FNV.TO) closed down 2 to 3.5%.
Organigram Holdings Inc. (OGI.TO) tumbled nearly 8%. The company reported a narrower net loss for the fourth quarter, helped by increased revenue and a decline in costs. For the three-month period to September 30, the firm recorded a net loss of C$5.433 million, compared with a loss of C$26.595 million, registered for the same period last year.
Torex Gold Resources (TXG.TO) climbed more than 7%. Sangoma Technologies (STC.TO), GFL Environmental (GFL.TO), Quebecore Inc (QBR.B.TO), Boyd Group Services (BYD.TO), Canadian Tire Corporation (CTC.TO) and K-Bro Linen (KBL.TO) closed with sharp to moderate gains.
