TSX Ends Notably Lower On Rate Hike Fears

The Canadian market ended notably lower on Friday amid fears about aggressive monetary tightening by the Federal Reserve after data showed strong than expected growth in U.S. non-farm payroll employment in the month of May.

Weakness in European and the U.S. markets weighed as well.

The benchmark S&P/TSX Composite Index ended lower by 241.08 points of 1.15% at 20,790.73, nearly 40 points off the day's low of 20,753.48.

Technology, healthcare, consumer discretionary and materials shares declined sharply. Several stocks from industrials and financials sectors too ended notably lower.

BRP Inc (DOO.TO) tanked more than 10% after reporting a drop in quarterly earnings. BRP reported net income of $121.0 million for the quarter ended April 30, 2022, compared with net income of $244.4 million in the corresponding quarter last year.

Shopify Inc (SHOP.TO) drifted down 11.1%. goeasy (GSY.TO), Nuvei Corporation (NVEI.TO), Tourmaline Oil Corp (TOU.TO), Magna International (MG.TO), Kinaxis Inc (KXS.TO), Fairfax Financial Holdings (FFH.TO), WSP Global (WSP.TO), Nutrien (NTR.TO), Constellation Software (CSU.TO) and Franco-Nevada Corporation (FNV.TO) lost 2 to 4%.

West Fraser Timber (WFG.TO) moved up 5.5%. Enerplus Corp (ERF.TO) rallied 4%. Sierra Wireless (SW.TO), Badger Infrastructure Solutions (BDGI.TO), Loblaw Companies (L.TO) and Metro (MRU.TO) gained 1 to 4%.

On the economic front, data from Statistics Canada showed labour productivity in Canada declined by 0.5% in the first quarter of 2022, easing from an upwardly revised 0.6% fall in the previous quarter.

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