Markets fell sharply today as investors awaited the US Federal Reserve’s decision on interest rates south of the border.
Recent economic data points towards a future rate hike, prompting President Donald Trump to tweet that it is ‘incredible’ that the ‘Fed is even considering yet another interest rate hike.’
On Bay Street, the TSX lost 232 points with 10 of 11 sectors trading lower.
The energy sector slipped 2.4 percent as crude oil prices fell. Oil dropped $2.11 to $49.09 US a barrel, pressured by an oversupply of U.S. domestic inventories and concerns about how slowing global economic growth will affect demand.
Energy stocks backpedaled with Baytex Energy, Crescent Point Energy, and Canadian Natural Resources losing between 3.1 and 7.1 percent.
The materials sector didn’t escape the red, edging 0.2 percent lower despite a rise in gold prices.
In New York, the pending Fed decision and under-performing consumer and financials stocks slammed the Dow, which tumbled 535 points.
Among the exchange’s biggest drags was Johnson & Johnson, which is still reeling after Reuters reported last week that the company knew for years that it had asbestos in its baby powder. Johnson & Johnson fell another 2.9 percent today.
Drops in Goldman Sachs and American Express dented the Dow’s financials sector.
Goldman Sachs stock dipped 2.7 percent after the U.S. bank and two of its former employees were implicated in a money laundering scheme in Malaysia.
After hovering above the flat line earlier in the day, the Nasdaq spiraled into the red, moving 156 points lower with broad based losses among U.S. tech stocks.
Gold was popular among investors, jumping $8.10 to $1,246 an ounce while the loonie weakened against the greenback, off by 15/100ths of a cent to $.07459 US.