The TSX sharply reversed course, going from green to red today.
A drop in Canada’s inflation rate initially sparked optimism that the Bank of Canada could pump the brakes on future interest rate hikes.
The nation’s inflation rate slowed to 1.7 percent in November, marking its smallest increase since January.
But late in the trading day, the index went in an opposite direction before falling 152 points with all 11 sectors trading lower.
Even the influential energy sector couldn’t stay out of negative territory, despite a rise in the price of oil, which jumped $1.72 to $47.96 US a barrel after U.S. data showed higher demand for refined products.
A factor in the market plunge on both sides of the border was the U.S. Federal Reserve’s decision to hike rates for the fourth time this year.
In New York, the Dow went for a nosedive on the news, hitting a new low for the year before falling 351 points.
The index saw triple digit gains earlier in the day as investors awaited the Fed’s decision.
The industrials sector was among the biggest drags on Wall Street, with Caterpillar and Boeing losing 1.5 and 2.5 percent, respectively.
The Nasdaq also sunk deep in the red, falling 147 points with broad-based losses among tech stocks, led lower by a 2.9 percent loss in Apple shares, a 7.9 percent plunge in Micron, and a 6.7-percent drop in Facebook’s stock.
Facebook wobbled after the New York Times reported that the social media giant allowed companies including Netflix and Spotify to access millions of people’s private messages.
Gold and the Canadian dollar both lost value. The loonie inched 17/100ths of a cent lower to $0.7409 US, while gold fell $7.90 to $1,242 an ounce.
