TORONTO 鈥� Canada's main stock index was down more than 100 points Wednesday, weighed down by losses in base metal and energy stocks, while U.S. stock markets also moved lower ahead of after-market earnings from Nvidia.
The S&P/TSX composite index closed down 121.40 points at 22,346.76.
In New York, the Dow Jones industrial average was down 201.95 points at 39,671.04. The S&P 500 index was down 14.40 points at 5,307.01, while the Nasdaq composite was down 31.08 points at 16,801.54.
Wednesday brought the minutes from the U.S. Federal Reserve鈥檚 latest meeting, which showed Fed officials suggesting it 鈥渨ould likely take longer than previously thought鈥� to get inflation fully under control.
The minutes weren鈥檛 a big surprise, but showed officials speaking a little more hawkishly than chair Jerome Powell did at the press conference after the last decision, said Greg Taylor, chief investment officer at Purpose Investments.
鈥淪ome thought that ... inflation would be coming down faster than it has been,鈥� he said.
鈥淲ithout it coming down as fast, it鈥檚 probably going to be harder to see the aggressive rate cuts that some people have been expecting, so probably more leaning towards higher for longer.鈥�
The minutes also said some participants were willing to raise rates again if inflation worsens.
The chances of that are 鈥渟lim to none,鈥� said Taylor, but officials likely just wanted to keep the door open to the possibility.
Markets appeared to be taking some profits on commodities, with base metals, gold and others down on Wednesday, said Taylor.
The TSX base metals index was down 5.27 per cent.
鈥�(It鈥檚) generally a pretty big risk-off in the commodity market after a pretty nice run for the last few months,鈥� Taylor said.
Otherwise, investors spent most of the day anxiously waiting for Nvidia's earnings release after the bell.
The company is a 鈥減owerhouse鈥� stock, Taylor said, and wrapped up in the bullishness over artificial intelligence.
Expectations had been high for the company that鈥檚 been helping lead a long rally on Wall St., said Taylor, and its guidance for the months ahead will be key.
The company鈥檚 earnings have the potential to move markets on Thursday, he added: 鈥淚t's done that in the past over the last year.鈥�
On Wednesday, earnings from Target missed the mark and its stock sank eight per cent.
In Canada, Thursday will see TD kick off earnings from the major banks. The ongoing investigations in the U.S. into the bank鈥檚 money-laundering defences have been a 鈥渂lack mark鈥� on that stock, said Taylor, so investors will be watching for any updates on the situation.
The Canadian dollar traded for 73.13 cents US compared with 73.27 cents on Tuesday.
The July crude oil contract was down US$1.09 at US$77.57 per barrel and the June natural gas contract was up 17 cents at US$2.84 per 1,000 cubic feet.
The June gold contract was down US$33.00 at US$2,392.90 an ounce and the July copper contract was down 26 cents at US$4.85 a pound.
-- With files from The Associated Press
This report by The Canadian Press was first published May 22, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
