The Toronto Stock Exchange (TSX) has fallen to its lowest level in 14 months as investor fears
of an economic recession intensify.
The Toronto Stock Exchange fell 3.10% yesterday (June 16) to 19,004.06, its lowest level since
April 2021.
Separately, the Canadian dollar declined 0.3% to 1.2925 against the U.S. dollar, or 77.37 U.S.
cents. At one point, the Canadian dollar was at its weakest intraday level in more than a month.
U.S. stock indexes also fell sharply, with the Dow Jones Industrial Average losing more than
700 points and closing below 30,000, its lowest level in more than a year. The selloff came a
day after the U.S. Federal Reserve raised interest rates by 75 basis points, its biggest one-time
rate hike since 1994.
Declines on the TSX included a drop of 5.3% for the energy sector, extending its recent pullback
even as oil prices rose. Technology stocks listed on the TSX, which are particularly sensitive to
higher interest rates, fell 4.1%, and financial stocks ended trading 3.1% lower.
On the economic front, Canada’s wholesale trade decreased by 0.5% in April from March due to
a drop in fertilizer imports from Russia.
The Toronto Stock Exchange is down 11% year to date, placing it in a correction. However, the
TSX has fallen less than the benchmark S&P 500 index in the U.S., which is down 24% on the
year and in a bear market.