The S&P/TSX Composite Index fell in late-morning trading on Wednesday. This was due to weakness in the technology and financial sectors. Shopify and Constellation Software dropped around 1.2% and 0.8%.
This mirrored overnight pullbacks in U.S. megacap stocks. Financial heavyweights Brookfield and Scotiabank declined about 0.8% and 1%. This followed a flatter yield curve spurred by an ADP report.
The report raised fresh doubts about the timing of Federal Reserve rate cuts.
Tech and finance weigh down TSX
Commodity producers offered some relief to the index.
Canadian Natural, Suncor, Barrick Gold, and Cenovus saw their shares increase by over 1%. Domestically, concerns were further compounded by S&P Global’s June Canada Manufacturing PMI. It plunged to 45.6, its lowest point in over five years.
This marked the fifth consecutive month of sharp output decline, weakened export orders, and the fastest rate of inventory reduction since 2020. The slump highlights the continuing adverse effects of tariffs and trade disputes on export-oriented sectors. Overall, while commodity producers provided some stabilization, the tech and financial sectors’ downturn heavily weighed on the TSX.
This reflected broader economic uncertainties.
