A day after reaching a new all-time high, Canadian stocks fell sharply on Thursday as investors reacted to renewed caution from the U.S. Federal Reserve on the timing of more interest rate cuts. Comments from San Francisco Fed president Mary Daly suggested that while inflation is easing, policymakers remain hesitant to commit to a rate reduction in December. The remarks weighed on investor sentiment, leading to a 574-point, or 1.9%, drop in the S&P/TSX Composite Index, which closed at 30,254.
As a result, the TSX snapped a four-day winning streak and registered its worst single-day performance in over six months. Even as strong corporate results gave stability to the consumer discretionary sector, heavy losses in most other key sectors, including healthcare, technology, and mining, dragged the broader index lower.
Top TSX Composite movers and active stocks
Shares of Northland Power (TSX:NPI) crashed by over 27% to $18.24 per share, making it the worst-performing TSX stock for the day. This massive selloff in NPI stock came a day after the Toronto-based clean energy producer announced a steep cut in its annual dividend and recorded a $456 million quarterly net loss, driven by a $527 million impairment charge on one of its offshore wind facilities.
While Northland highlighted strong third-quarter operating results and reaffirmed project timelines, the market appeared spooked by the dividend reduction and the potential impact of slower-than-expected turbine commissioning on its future revenues. On a year-to-date basis, NPI stock is now up just 2%.
Celestica, Bird Construction, and Curaleaf were also among the bottom performers on the Toronto Stock Exchange, with each diving by at least 7.4%.
On the flip side, Linamar, AtkinsRéalis Group (TSX:ATRL), Baytex Energy, and Canada Packers climbed by at least 2.2% each, making them the day’s top-performing TSX stocks.
The rally in ATRL stock followed the release of its strong third-quarter results, which included a 15% year-over-year increase in its total revenue and a 68% jump in its earnings per share from its core professional services and project management business.
Based on their daily trade volume, Baytex Energy, Canadian Natural Resources, Northland Power, Enbridge, and Barrick Mining were the five most active stocks on the exchange.
TSX today
Crude oil prices edged up in early morning trading on Friday, but precious metals prices fell sharply. Given these mixed commodity signals, the TSX could open with sectoral divergence today, with energy stocks expected to find support while mining stocks face early pressure.
Although no major economic releases are due this morning, Canadian investors will continue to closely monitor global macro developments, including commentary from U.S. Federal Reserve officials and commodity markets for direction.
On the corporate events side, TSX-listed companies Keyera, MDA Space, and George Weston will release their third-quarter earnings reports today.
Market movers on the TSX today
