Stocks in Toronto Slide as U.S. Inflation Surprises

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The Toronto stock market saw a decline on Tuesday, mirroring the weakness on Wall Street. The drop was triggered by higher-than-expected U.S. inflation figures for January, which may delay the anticipated interest rate cut by the Federal Reserve.

Market Performance

In midday trading, the S&P/TSX Composite Index fell 1.9% to 20,670.68, while the blue-chip S&P/TSX 60 dropped 1.9% to 1,247.57. Losses were observed across various industry sectors.

Major Influences

  • Constellation Software registered notable trading volume losses. Its shares decreased by 1.2% to C$3,617, thereby impacting technology prices.

  • Shopify experienced a 10% drop in shares, reaching C$107.88. The ecommerce company reported higher costs that might affect margins in the first quarter of this year.

Other Market Movements

  • Hydro One shares fell by 0.8% to C$39.59 after the utility saw a slightly higher profit in Q4 2023. The increase in revenue, offsetting rising financing and depreciation costs, resulted from approved provincial electricity distribution rates.

  • SSR Mining witnessed a significant 52% decline in stock value, falling to C$6.26. The company halted operations at its Copler mine in Turkey due to a major slip on the heap leach pad.

  • OrganiGram’s shares dropped by 8.3% to C$2.65. The licensed cannabis producer reported a loss and lower-than-expected revenue in its fiscal first quarter due to sluggish international sales.

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