The S&P/TSX Composite Index fell on Wednesday, pressured by declines in the technology and financial sectors. This came despite gains in commodity producers. Leading tech companies on the TSX, such as Shopify and Constellation Software, saw their shares drop by around 1.2% and 0.8% respectively.
The trend followed overnight pullbacks in U.S. megacap stocks. Major financial institutions also faced losses. Brookfield and Scotiabank dropped by roughly 0.8% and 1%, respectively.
tsx hit by tech and finance
Concerns over a flatter yield curve emerged after the ADP report raised fresh doubts about the timing of Federal Reserve rate cuts. On a positive note, commodity producers provided some support to the index.
Canadian Natural, Suncor, Barrick Gold, and Cenovus all gained over 1%. In domestic economic news, the June Canada Manufacturing PMI from S&P Global plummeted to 45.6, its lowest point in more than five years. This marked the fifth consecutive month of significant output decline, weak export orders, and the fastest inventory destocking since 2020.
The data underscores how tariffs and trade frictions continue to impact Canada’s export-oriented sectors. Investors will be closely monitoring these developments and their implications for the broader market in the coming weeks.
