Mag 7 sinks Wall Street, BoC cuts
On Wednesday, U.S. markets tanked after heavyweights Alphabet and Tesla issued weak earnings. They closed -5.03% and -12.33% respectively as other Magnificent 7 names such as Meta finished -5.61% and Nvidia -6.8%. Among the few gainers was AT&T, rallying 5.22%. The main indexes had their worst showing in a year, 2022 for the Nasdaq: S&P -2.31%, the Dow -1.25% or over 500 points to tumble below 40,000, and the Nasdaq -3.64% or over 650 points. The U.S. 10-year yield inched up to 4.285% as Bitcoin stayed flat at US$65,940.
As expected, the Bank of Canada cut its key interest rate by 25 basis point to 4.5%. The decision helped limit the TSX’s losses to 0.76%, though healthcare was particularly beaten in the sell-off. Bausch Health tanked over 23% on unconfirmed reports of a bankruptcy filing (the company denies it). Meanwhile, tech names Celestica closed -7.49% and Shopify -5.21%, TransAlta rallied 4.49% and Manulife -1.47%. WTI gained half-a-dollar to US$77.45 as Gold sank US$41 to trade below US$2,400.
