It was yet another dismal day for North American markets.
The gloom continues on Wall Street as investors digested yesterday’s rate hike from the U.S. Federal Reserve, disappointing earnings results, and the specter of a partial government shutdown.
On Bay Street, the TSX couldn’t hold its momentum after opening higher on the back of the materials sector.
The index extended Wednesday’s losses by dropping another 122 points.
Nine of 11 sectors were lower including energy, financials, and health care.
The energy and health care sectors backpedaled, with a sell-off of cannabis stocks and a sharp dip in oil prices.
Energy stocks took a hit as oil prices continue to slide.
Oversupply and concerns over demand due to the U.S.’s flagging stock market ruled the day, sending crude to its lowest price in a year.
Oil fell $1.96 to $46.21 US a barrel.
Meanwhile, Canada’s two most actively traded cannabis companies, Aphria and Aurora Cannabis, sunk three and 3.6 percent, respectively.
Aphria Inc. is facing a class action suit from law firm Koskie Minsky LLP, alleging the company made false and misleading statements about its business affairs.
In New York, the Dow is feeling the weight of the Fed’s rate hike, and hand-wringing among investors over the threat of a partial government shutdown from the Trump Administration.
The Dow tumbled to a 14-month low before losing 464 points.
Few of the index’s bellwethers escaped the red, with drops of 1.6 percent or more in Apple, Boeing, General Electric, Walmart, Chevron, and Exxon Mobile.
It was a rough day for the tech-dependent Nasdaq which lost 108 points.
CNBC reported that the index flirted with bear market territory, before clawing back some of its losses.
Gold prices jumped against a weakening greenback, climbing $7.50 to $1,260 an ounce while the loonie was relatively unchanged, inching 9/100ths of a cent lower to $0.7406 US.