S&P/TSX composite drops after hitting record intraday high, loonie rises again
Published Monday, May 10, 2021 12:06AM EDT Last Updated Monday, May 10, 2021 5:34PM EDT
TORONTO -- Canada's main stock index slumped after setting a record intraday high to start the trading week while the Dow Jones industrial average surpassed 35,000 for the first time.
The S&P/TSX composite index closed down 110.86 points to 19,361.88 after hitting an intraday high of 19,543.88.
In New York, the Dow Jones industrial average lost 34.94 points at 34,742.82 after peaking at 35,091.56. The S&P 500 index was down 44.17 points at 4,188.43, while the Nasdaq composite was down 350.38 points, or 2.6 per cent, to 13,401.86.
"The market is catching its breath after a full week of data," said Craig Fehr, investment strategist at Edward Jones.
Weakness in the technology sector led the Nasdaq lower and pushed Canada's tech sector down more than 2,8 per cent Monday amid a rotational shift to cyclical and value sectors.
Shares of Lightspeed POS Inc. lost 6.5 per cent, while BlackBerry Ltd. and Shopify Inc. were down 4.1 and 3.1 per cent, respectively.
Health care was down 4.4 per cent with Organigram Holdings Inc. down 9.6 per cent and Aurora Cannabis Inc. off 6.1 per cent.
Commodities were lower with energy and materials showing some weakness on the day.
Energy dropped 1.2 per cent with Cenovus Energy Inc. down 3.2 per cent and MEG Energy Corp. 2.6 per cent lower.
Crude oil prices rose early in the day following a cyberattack that forced the shutdown of the Colonial Pipeline on Sunday. However, the surge dissipated as it became clear the shutdown of the major eastern U.S. pipeline wouldn't be a long-term impairment. Gasoline price also recovered.
The June crude contract was up two cents at US$64.92 per barrel and the June natural gas contract was down 2.6 cents at US$2.98 per mmBTU.
Global demand concerns remain over heavy COVID-19 infection rates in India.
"I think that is going to serve to temper around the timing of the recovery," Fehr said about the future global oil demand picture.
The Canadian dollar traded for 82.68 cents US compared with 82.26 cents US on Friday.
Gold prices climbed to a three-month high Monday after Friday's weak jobs report in the U.S. pressured the American dollar over anticipation that the Federal Reserve would not be in any hurry to raise interest rates.
The June gold contract was up US$6.30 at US$1,837.60 an ounce and the July copper contract was down 3.25 cents at nearly US$4.72 a pound.
Shares of Dundee Precious Metals Inc. dropped 7.2 per cent while First Quantum Minerals Ltd. was off 5.1 per cent.
Consumer staples led three of the 11 major sectors higher.
This report by The Canadian Press was first published May 10, 2021.