The Canadian stock market fell sharply on Wednesday after the Bank of Canada (BoC) and the U.S. Federal Reserve kept interest rates steady while highlighting a still-uncertain inflation and growth outlook amid the intensifying geopolitical tensions in the Middle East and their potential impact on global inflation. These warnings hurt investor sentiment and sent the S&P/TSX Composite Index down by 616 points, or 1.9%, to 32,313 — its lowest closing level in over five weeks.
All key market sectors ended the session in red, with mining, consumer cyclical, and technology stocks leading the broader market selloff.
Monetary policy concerns hurt sentiment
In its latest policy statement, the BoC maintained its benchmark interest rate at 2.25% and emphasized that while inflation remains close to its 2% target, rising global energy prices could push inflation higher in the near term. The central bank also noted that Canada’s economic growth is expected to remain modest, with recent data pointing to softer labour market conditions and weaker exports.
Meanwhile, the U.S. Federal Reserve kept rates unchanged and projected slightly higher inflation this year, even as it maintained a stable growth outlook.
Top TSX Composite movers and active stocks
Shares of Boyd Group Services (TSX: BYD) plunged by over 13% to $192.84 apiece, making it the worst-performing TSX stock for the day. This selloff in BYD stock came after the Winnipeg-based company reported a 25% year over year drop in its full-year net profit to US$18.4 million, with earnings per share down 28.3% to US$0.82.
This decline in Boyd’s yearly net profit was partly impacted by US$22.6 million in acquisition and transformational costs tied to the Joe Hudson deal and Project 360. Even as the company highlighted margin improvement and positive same-store sales growth in the fourth quarter, investors appeared focused on the drop in reported earnings and integration-related expenses.
Similarly, Seabridge Gold, Discovery Silver, and NovaGold Resources were also among the day’s bottom performers on the Toronto Stock Exchange, with each diving by at least 12%.
Despite the broader market selloff, MDA Space (TSX: MDA) climbed nearly 6% after it secured a contract valued at approximately $32 million from Canada’s Defence Investment Agency to deliver three Ground-Based Optical observatories for the Department of National Defence.
ATS, Methanex, and Vermilion Energy also inched up by at least 3.2% each, making them the session’s top-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Baytex Energy, B2Gold, Barrick Mining, and Suncor Energy were the five most active stocks on the exchange.
TSX today
Commodity prices, especially precious and base metals, fell sharply in early morning trading on Thursday, which could drive the resource-heavy main TSX index lower at the open today.
In addition, BoC’s and Fed’s cautious stance on the interest rate outlook could keep investors on edge, especially as uncertainty around inflation and global growth persists.
On the corporate events front, the TSX-listed Premium Brands Holdings, Orla Mining, and NGEx Minerals will release their latest quarterly earnings reports today, which could keep these stocks in the spotlight throughout the session.
Market movers on the TSX today
