May 29 : TSX Ends Sharply Lower As Stocks Tumble On Rate Concerns

Canadian stocks tumbled on Wednesday on concerns the Federal Reserve might keep interest rates higher for longer in the event of U.S. inflation readings coming in hotter than expected.

The Commerce Department is due to release its report on personal income and spending in the month of April, which includes readings on inflation said to be preferred by the Fed. The inflation data could have a significant impact on the outlook for interest rates ahead of the Fed’s next monetary policy meeting.

Selling was widespread on Bay Street, with financials, utilities, materials and energy sectors suffering sharp losses. Several shares from consumer discretionary, real estate, communications and industrials sectors also ended sharply lower.

The benchmark S&P/TSX Composite Index, which opened with a negative gap of nearly 100 points at 22,170.16 (it remained the day’s high), ended with a loss of 367.07 points or 1.65% at 21,897.98, a point off the day’s low.

Bank of Montreal (BMO.TO) tanked nearly 9% as the bank’s results fell short of expectations. The lender reported adjusted net income of C$2.03 billion or C$2.59 per share for the second-quarter, compared to prior year’s C$2.19 billion or C$2.89 per share.

National Bank of Canada (NA.TO) climbed more than 2.5%. The bank reported net income of C$906 million or C$2.54 per share for the second quarter, higher than C$832 million or C$2.34 per share in the same quarter a year ago, primarily helped by growth in revenue in all segments.

Nutrien (NTR.TO), Bombardier Inc (BBD.B.TO), Cargojet (CJT.TO), Fairfax Financial Holdings (FFH.TO), Canadian Natural Resources (CNQ.TO), CGI Inc (GIB.A.TO), Boyd Group Services (BYD.TO) and Stantec (STN.TO) lost 2 to 3.4%.

Royal Bank of Canada (RY.TO), Colliers International (CIGI.TO), goeasy (GSY.TO), Thomson Reuters (TRI.TO), WSP Global (WSP.TO) and Franco-Nevada Corporation (FNV.TO) were among the several other prominent losers.

Ag Growth International (AFN.TO) soared 11.1%. Softchoice Corporation (SFTC.TO) rallied 3.2%. Tecsys (TCS.TO), Kinaxis Inc (KXS.TO), Nuvei Corporation (NVEI.TO) and Cameco Corporation (CCO.TO) also posted strong gains.