Equity markets in Canada opened lower on Tuesday after a surprisingly stronger-than-expected inflation report clouded hopes for interest rate cuts from the Bank of Canada in July.
The TSX Composite Index dropped 90.39 points to open for business Tuesday at 21,758.20
The Canadian dollar fell 0.04 cents to 73.18 cents U.S.
French renewable power producer Neoen SA signed a share purchase agreement for the acquisition of a majority stake by asset management firm Brookfield, whose shares demurred 70 cents, or 1.2%, to $55.93.
In the economic docket, Statistics Canada says May’s gross domestic product rose 2.9% on a year-over-year basis in May, up from a 2.7% gain in April. On a seasonally-adjusted monthly basis, the CPI rose 0.3% in May.
ON BAYSTREET
The TSX Venture Exchange subtracted 0.45 points to 563.36.
All 12 TSX subgroups were lower in the first hour, weighed most by communications and consumer discretionary stocks, each off 1%, while health-care backpedaled 0.9%.
ON WALLSTREET
A rebound in Nvidia shares led the S&P 500 and NASDAQ Composite higher on Tuesday, a day after a sell-off in the chipmaking giant.
The Dow Jones Industrials sank 128.66 points to 39,282.55.
The S&P 500 recovered 13.54 points to 5,461.41.
The NASDAQ jumped 145.34 points to 17,642.15.
Nvidia shares gained than 3%. In the previous session, the stock dropped more than 6% to mark its biggest one-day slide since April 19, when it lost 10%.
The latest decline pushed the AI darling deeper into correction territory, or more than below 13% their intraday record. Other semiconductor stocks were also under pressure on Monday, including Super Micro Computer, Qualcomm and Broadcom.
Nvidia’s losses pushed the NASDAQ down more than 1% on Monday, its biggest one-day loss since April. The NASDAQ-100 also suffered its worst day since April as investors rotated out of chipmakers. This inter-market shift boosted the Dow by more than 200 points, making it the lone U.S. stock benchmark to post a gain in the previous session.
Several large cap tech names also rose after suffering declines on Monday. Amazon, Meta and Google all rose by more than 1%.
Meanwhile, SolarEdge Technologies sank 17% after announcing plans for a $300 million private offering of convertible notes. Pool Corp also dropped 8% after adjusting its guidance downward.
Prices for the 10-year Treasury slid, raising yields 4.24% from Monday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices gathered seven cents at $81.56 U.S. a barrel.
Gold prices dulled $7.80 to $2,336.60
