Canadian stocks plunged in the market’s worst week in more than two years as investors fled riskier assets amid deepening concerns that red-hot inflation could trigger a recession.
The S&P TSX Composite Index fell 0.4 per cent on Friday, extending losses to tumble 6.6 per cent this week, the gauge’s biggest drop since March 2020 when the pandemic devastated global markets.
“What has hurt Canada is that finally we’re seeing the market start to price in a recession, even for the most cyclical, inflation sensitive stocks like energy,” Edgehill Partners Chief Investment Officer Jason Mann said in an interview.
Investors fled the equity markets this week, dragging the S&P 500 Index into its first bear market since March 2020 on Monday. The sell-off worsened on Wednesday when the US Federal Reserve raised interest rates by 75 basis points, the biggest increase since 1994.
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