/cloudfront-us-east-1.images.arcpublishing.com/tgam/MBCGFSOJLROHDOP4B6JFNWGT2I.JPG)
Canada’s main stock index fell on Wednesday, as energy stocks fell with oil prices.
At 11:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 76.03 points, or 0.49%, at 15,439.88.
The energy sector slid 3.5% as a barrel of U.S. crude oil fell 1.5% to $37.79. Brent crude, the international standard, slipped 1.1% to $40.51 per barrel.
The financials sector slipped 0.9%, while industrials stocks inched up 0.2%.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.5 % even as gold futures fell.
Canada’s annual inflation rate fell 0.4% in May, as the COVID-19 pandemic pushed gasoline prices lower year-over-year, Statistics Canada said.
The S&P 500 and the Dow were largely flat on Wednesday as a record rise in coronavirus cases in six U.S. states dented sentiment following a three-day rally on hopes of a swift recovery from a coronavirus-driven downturn.
Arizona, Florida and Oklahoma were among the states that saw a record increase in new infections on Tuesday as businesses reopened. Beijing extended its movement curbs as it fought the worst resurgence of the disease since early February.
Cruise operator Norwegian Cruise Line Holdings Ltd tumbled about 6.7% as it extended the suspension of its voyages through September end due to the virus outbreak.
Peers Carnival Corp and Royal Caribbean Cruises Ltd also dropped 6.1% and 7.8% each.
The benchmark S&P 500 wrapped up its best three-day percentage rise in a month on Tuesday after a report on a massive fiscal stimulus plan and a stunning retail sales report for May reflected a pickup in demand as businesses reopened.
“The market got ahead of itself based on the Fed stimulus,” Matt Peden, chief investment officer at GuideStone Capital Management in Dallas said. “There could be further consolidation in the marketplace, that would be healthy, and would bring stocks closer to a more rational valuation level.”
Encouraging economic data and trillions of dollars in monetary and fiscal stimulus have propelled a rally in the Wall Street indexes from their late-March trough.
The S&P 500 is about 3% below its record closing high hit in February, while the tech-heavy Nasdaq was about 1% below its all-time closing high on June 10.
Federal Reserve Chair Jerome Powell warned on Tuesday that a full recovery is unlikely until the public is confident that the disease is under control, as he testified before U.S. lawmakers. The second day of his virtual hearing will begin at 12 p.m. ET (1400 GMT).
The Dow Jones Industrial Average was down 25.50 points, or 0.10%, at 26,264.48, the S&P 500 was up 0.91 points, or 0.03%, at 3,125.65. The Nasdaq Composite was up 49.02 points, or 0.50%, at 9,944.88 with Apple Inc, Microsoft Corp and Amazon providing the biggest boost.
Energy and utilities led losses among the major S&P sectors.
Oracle Corp fell 4.2% after its quarterly revenue missed estimates as the pandemic led clients in the hospitality, retail and transportation sectors to postpone purchases.
Reuters
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
