Canada’s main stock index lost almost one per cent on Friday as the market saw broad-based weakness, while U.S. markets also fell.
The downward slide comes as investors have had to swallow a bitter pill this week, with U.S. inflation data making interest rate cuts south of the border look less imminent than before.
“I think in general it’s a recalibration of expectations with respect to central banks and interest rates,” said Philip Petursson, chief investment strategist at IG Wealth Management.
The S&P/TSX composite index closed down 210.12 points at 21,899.99.
In New York, the Dow Jones industrial average was down 475.84 points at 37,983.24. The S&P 500 index was down 75.65 points at 5,123.41, while the Nasdaq composite was down 267.10 points at 16,175.09.
There are currently two schools of thought, said Petursson: Those who think equities need interest rate cuts, and those who are more focused on the ongoing strength of…
