Canada’s main stock index dipped from all-time highs on Wednesday due to a technology sector sell-off on Wall Street. Despite this, gains in oil and defensive stocks helped cushion overall market losses. The Toronto Stock Exchange’s S&P/TSX composite index fell by 0.59%, ending a five-session winning streak at 22,589.16.
The pressure on U.S. markets from escalating trade tensions with China spilled over into Canada, impacting the tech sector. While the energy sector saw a boost of over 1% as oil prices rebounded, investors also turned to defensive sectors like healthcare and utilities. With the Bank of Canada gearing up for its monetary policy meeting and softer inflation numbers in June, the possibility of another rate cut looms.
The ongoing trade tensions between the U.S. and China, particularly involving semiconductor chip technology, took a toll on chip stocks worldwide. Wall Street’s big names, such as Nvidia and Broadcom, experienced losses, causing market indexes to slide. However, despite the market downturn, some sectors like healthcare and utilities managed to gain, offering a silver lining amid the tech turmoil.
