Canadian Stocks Drop as Fed Signals Fewer Rate Cuts Ahead

In a challenging trading session, Canadian stocks fell sharply, driven by political uncertainty and new Federal Reserve projections that forecast fewer interest rate cuts than previously expected. The S&P/TSX Composite Index dropped significantly, with all sector indices finishing in the red.

Date: 19-12-2024

AI Rating: 5

The report highlights significant concerns in the Canadian stock market, primarily triggered by political uncertainty and fear of a tariff war, leading to a bearish market sentiment. The S&P/TSX Composite Index saw a notable decline of 2.24%, dropping by 562.71 points to settle at 24,557.00, marking one of the most substantial single-session decreases in months.

While earnings information was not detailed for all companies, Organigram Holdings Inc. did report a narrower net loss in the fourth quarter compared to the previous year, indicating improved revenue and cost management. Specifically, the company recorded a net loss of C$5.433 million, a marked improvement from the C$26.595 million loss recorded in the same timeframe the previous year. This could positively affect investor sentiment toward the company as it suggests upward momentum in operational efficiency.

However, most stocks listed showed a significant downturn, including major players like Hut 8 Corp with an 11% tumble and Shopify Inc. down 7.3%. These declines across multiple sectors, especially technology and materials, indicate a broad market sell-off.

Additional stocks such as Torex Gold Resources experienced gains, climbing over 7%, which highlights that there were pockets of resilience amidst a general market downtrend.

Stocks: HUT.TO SHOP.TO BAM.TO CLS.TO DCBO.TO TVK.TO DAY.TO AEM.TO CSU.TO BBD.B.TO CIGI.TO WPM.TO DSG.TO KXS.TO TFII.TO WFG.TO GSY.TO DOL.TO RY.TO FNV.TO OGI.TO TXG.TO