Stocks throughout North America were belted Wednesday, as a disappointing report from the U.S. Federal Reserve failed to raise spirits a week before Christmas.
The TSX behaved as if hit by a boulder rolling downhill , falling 562,71 points, or 2.2%, to 24,557.
The Canadian dollar sank 0.62 cents to 69.26 cents U.S.
In corporate news, lithium miner Patriot Battery Metals secured a $69-million investment from automotive giant Volkswagen for a 9.9% stake. Shares trading under the symbol “PMET” galloped 76 cents, or 28.7%, to $3.41.
Nuvista Energy fell 71 cents, or 5.3%, to $12.77, after the oil and natural gas firm said that it temporarily curtailed production in the greater Wapiti area due to unscheduled maintenance at a third-party gas plant.
Techs were hit hard, particularly, Bitfarms, plummeting 38 cents, or 12.8%, to $2.60, while Shopify floundered $12.52, to 7.3%, to $158.36.
In gold, Kinross Gold doffed 67 cents, or 4.9%, to $13.03, while Alamos Gold let go of $1.26, or 4.6%, to $26.06.
In materials, Silvercrest Metals lost 92 cents, or 6.4%, to $13.43, while Calibre Mining dished off 16 cents, or 6.8%, to $2.19.
ON BAYSTREET
The TSX Venture Exchange weakened 14.94 points, or 2.5%, to 582.31.
All 12 TSX subgroups were lower, weighed most by information technology, down 4.4%, gold, dumping 3.8%, and materials, off 3.7%.
ON WALLSTREET
The Dow Jones Industrial Average sank deeper into the history books on Wednesday, with the index posting its 10th straight losing day as a disappointing rate outlook by the Federal Reserve rocked the stock market.
The 30-stock index tumbled 1,123.03 points to 43,608.93. This being 10th straight losing session on Wednesday, the Dow suffered its worst losing streak since an 11-day slide in 1974.
The S&P 500 index stumbled 178.45 points, or 3%, to 5,872.16
The NASDAQ dissolved 716.37 points, or 3.6%, to 19,392.69.
The central bank reduced its overnight borrowing rate by a quarter point to a target range of 4.25% to 4.5%, as expected. However, the Fed indicated Wednesday afternoon it would only cut rates twice in 2025, fewer than the four cuts given in its last forecast. Fed Chair Jerome Powell said the central bank’s move to cut rates in recent months allows it to “be more cautious as we consider more adjustments to our policy rate.”
The Dow’s losing streak began the session after it closed above 45,000 for the first time ever on Dec. 4. The losses for the Dow during its losing streak have totaled 6%.
Prices for the 10-year Treasury fell back, raising yields to 4.51% from Tuesday’s 4.40%. Treasury prices and yields move in opposite directions.
Oil prices slid six cents to $70.02 U.S. a barrel.
Prices for gold swooned $56.10 an ounce to $2,605.90 U.S.