Canada's main stock index slipped on Tuesday as declines in commodity-linked companies outweighed gains in technology stocks, while Bank of Nova Scotia gained after beating fourth-quarter profit estimates.
The TSX dumped 130.15 points to pause for lunch Tuesday at 30,971.63.
The Canadian dollar inched higher 0.06 cents to 71.48 cents U.S.
Scotiabank reported a better-than-expected fourth-quarter profit on Tuesday, kicking off the bank earnings season on a positive note. Scotiabank sprinted $2.06, or 2.2%, to $98.09.
Investors are awaiting results from the rest of the big six Canadian banks — Royal Bank of Canada, TD Bank, BMO, CIBC and National Bank.
The six banks have gained nearly 31% on average this year, compared with a 26% rise in the broader index.
Elsewhere, Laurentian Bank surged $6.15, or 18.2%, to $39.91 after Fairstone Bank announced it would buy the smaller peer in a $1.9-billion all-cash deal.
Sun Life Financial announced it will issue $1 billion worth of debentures in Canada, while the Bank of Canada upgraded the price target on plane maker Bombardier to $263 from $234.
Sun shares shed 24 cents to $80.62, while those for Bombardier zoomed $6.05, or 2.7%, to $228.04.
ON BAYSTREET
The TSX Venture Exchanged settled 7.42 points, to 932.49.
All but two of the 12 TSX subgroups were lower midday, weighed most by gold, down 3.4%, materials, sliding 3.1%, and energy, off 1.3%.
The two gainers were information technology, up 0.6%, financials, ahead 0.5%.
ON WALLSTREET
Stocks rose on Tuesday, boosted by gains in bitcoin and technology names, as traders recovered some of the ground lost in the previous session.
The Dow Jones Industrials recovered 158.93 points mid-Tuesday to 47,448.26.
The S&P 500 Index forged ahead 9.82 points to 6,822.45.
The NASDAQ surged 105.01 points to 23,380.93.
Bitcoin rose 6% Tuesday, recouping some of its losses from the prior day. Tech players linked to the artificial intelligence trade supported the broader market as well. AI chip darling Nvidia increased around 1%. AI infrastructure play Credo Technology soared 17% to an all-time high on the back of better-than-expected earnings. Astera Labs followed Credo higher, gaining around 6%.
To be sure, it’s been a topsy-turvy session for stocks. The S&P 500 and Dow briefly turned negative on the day, while the Nasdaq got close to the flatline before moving back higher.
AI chip darling Nvidia increased nearly 2%.
AI infrastructure play Credo Technology soared 17% to an all-time high on the back of better-than-expected earnings. Astera Labs followed Credo higher, gaining around 6%.
The major U.S. indexes began the week in the red, ending five-day win streaks on Monday.
Risk-off sentiment has pressured the bull market in recent weeks as worries of persistent inflation, elevated valuations and returns on artificial intelligence spending weigh on investors.
Although November was a mixed month for stocks, investors are watching for catalysts that could lead to a year-end rally.
Traders are currently optimistic that the Federal Reserve will announce an interest rate cut on Dec. 10 at conclusion of its next policy meeting.
Markets are pricing a more than 87% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November.
The 10-year Treasury shied away, lifting yields to 4.10% from 4.09% on Monday. Treasury prices and yields move in opposite directions.
Oil prices shed 48 cents to $58.84.
Gold prices crumbled $62.10 to $4,212.70.
