TSX ends down 1.2% at 29,906.55
Posts its lowest closing level since November 6
Materials group falls 4.5% as copper prices decline
Technology ends 2.6% lower
(Updates at market close)
Nov 20 (Reuters) – Canada’s main stock index fell to a two-week low on Thursday, weighed down by declines in the materials and technology sectors as Nvidia’s earnings report failed to allay doubts that the surge in AI-related spending by companies will pay off.
The S&P/TSX Composite Index ended down 371.86 points, or 1.2%, at 29,906.55, its lowest closing level since November 6. Wall Street’s main indexes also lost ground as early enthusiasm driven by Nvidia’s earnings faded with investors questioning lofty valuations in the technology sector, while jobs data clouded the outlook for further U.S. interest rate cuts. U.S. employment growth accelerated in September, but the labor market remained sluggish and failed to keep pace with new job-seekers as employers dealt with fallout from import tariffs and integrated artificial intelligence into some positions. “There’s been a lot of publicity about the billions and billions of dollars going into capital expenditures without any concrete evidence that there is going to be payback any time soon,” said Michael Sprung, president at Sprung Investment Management.
“If one assumes that gravy train is slowing down or will end … then it’s going to certainly affect both the need for materials and technology.”
The Toronto market’s technology sector fell 2.6%, with shares of electronics equipment firm Celestica Inc down 9.5%.
The materials group, which includes metal mining shares, ended 4.5% lower, as gold and copper prices declined.
Nine of the 10 major sectors ended lower. The exception was consumer staples, which added 0.9%.
It was helped by a gain of 1.4% for the shares of food retail company Loblaw Companies Ltd.
Altus Group Ltd was another bright spot. Shares of the real estate services company rose 5.4% as the company provided strategic updates at an Investor Day. (Reporting by Fergal Smith in Toronto and Avinash P and Pranav Kashyap in Bengaluru; Editing by Shreya Biswas and Deepa Babington)
