The S&P/TSX Composite Index fell around 0.2%, dropping below the 26,820 mark on Wednesday. The decline was primarily driven by losses in technology and financial sectors, even as gains in commodity producers helped soften the blow. Major TSX tech companies like Shopify and Constellation Software tumbled around 1.2% and 0.8%, respectively, mirroring the overnight pullbacks in U.S. megacap stocks.
In the financial sector, Brookfield and Scotiabank saw declines of about 0.8% and 1%, respectively, following a flatter yield curve spurred by the ADP report, which has cast fresh doubts over the timing of potential Federal Reserve rate cuts. On the upside, commodity producers provided a buffer.
tsx futures weigh on market
Companies such as Canadian Natural, Suncor, Barrick Gold, and Cenovus Energy saw shares rise by over 1%. On the domestic front, the S&P Global’s June Canada Manufacturing PMI plunged to 45.6, marking its lowest point in over five years. This represents the fifth consecutive month of steep declines in output, export orders, and the fastest rate of inventory destocking since 2020.
The data highlights how tariffs and trade frictions continue to impact export-oriented sectors negatively. The overall market sentiment remains cautious as traders weigh the effects of economic indicators and their implications for future financial and policy decisions.
