TSX Records Longest Daily Losing Streak of 2024 Amid Decline in Tech Sector
Canada's TSX Falls for Fourth Straight Day
Canada's main stock index, the Toronto Stock Exchange's S&P/TSX composite index, declined for a fourth consecutive day on Tuesday, with technology and metal mining shares offsetting gains in the energy sector.
The S&P/TSX composite index ended the day down 233.85 points, or 0.7%, at 33,584.34, marking its lowest closing level since April 19. This represents the longest daily losing streak for the index since December.
The decline in the TSX was mirrored in U.S. stocks, which fell following a report that OpenAI had missed its internal revenue target, raising fresh concerns about the AI spending spree. Technology shares were hit particularly hard, with the sector declining 4.3% overall.
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| Sector | TSX Index Change |
|---|---|
| Technology | -4.3% |
| Materials | -3.8% |
| Energy | +2% |
The materials group, which includes metal mining shares, was down 3.8% as the price of gold fell to a near four-week low. Barrick Mining, a major player in the metals sector, saw its shares decline 3.4% following the appointment of Wessel Hamman as chief financial officer of the new company that will hold its North American assets in the run-up to its U.S IPO.
In contrast, the energy sector added 2% as the price of oil settled 3.7% higher at $99.93 a barrel. Stalled efforts to end the Iran war kept the Strait of Hormuz largely closed and constrained Middle East supplies.
Economists have suggested that the oil price shock from the war is unlikely to have a lasting impact on inflation, which should allow the Bank of Canada to leave its benchmark interest rate unchanged at 2.25% on Wednesday when the central bank is also due to update its economic forecasts.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Canada's housing market slump, the longest in recent decades, is straining household spending even as a record high domestic stock market generates hundreds of billions of dollars of increased wealth.
Investor Takeaway
Investors should be cautious of the decline in tech stocks and the potential impact on the market.
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