The Toronto Stock Exchange’s S&P/TSX Composite Index fell to a five-week low on Thursday, declining by 365.12 points, or 1.02%, to 35,541.44. The index had already extended losses from a 0.67% drop in the opening session, dropping below its previous session close of 35,906.56. This marked a further decline from an earlier five-week low of 35,583.89 reached on Wednesday. Meanwhile, broader U.S. equity indices also experienced declines: the S&P 500 shed 0.6% to 7,591.81, the NASDAQ Composite slipped 1% to 25,997.21, and the Dow Jones Industrial Average lost 0.5% to 52,125.87. The market’s reaction reflects concerns over rising energy prices and incoming inflation data ahead of Friday’s U.S. consumer price index report and the Federal Reserve’s policy decision in the coming week.
U.S. inflation data for August reinforced market anxieties. The Producer Price Index (PPI) rose 5.4% year-over-year, slightly above the 5.3% consensus estimate, while month-over-month growth was 0.4%, matching expectations. July’s figures were revised upward to a 0.1% month-over-month increase and a 4.8% year-over-year gain. The benchmark 10-year Treasury yield edged down 20 basis points to 4.82%, though it remained near its highest level since November 2023. The Treasury Department announced a $6 billion buyback of longer-dated government debt, falling short of some analyst expectations of up to $10 billion.
Energy markets showed resilience, with Brent crude oil prices climbing above $105 a barrel on Thursday, marking its first rise above that level since May. U.S. West Texas Intermediate crude also surpassed $100 for the first time since May. However, gold prices faced pressure, with spot gold falling 0.4% to $4,387.55 an ounce and gold futures slipping 0.7% to $4,430.45 an ounce, though they remained near $4,400 after rebounding from a July low near $4,000.
The market spotlight also turned to corporate earnings, with cloud-computing giant Oracle and design software group Adobe set to report quarterly results after the close. Apple’s first major product event under new CEO John Ternus drew attention, though the tech giant’s shares ended the prior session down 0.3%. Meanwhile, AI-driven trading strategies highlighted notable gains, including Super Micro Computer’s 185% increase and AppLovin’s 157% rise.
Upcoming economic data and Federal Reserve decisions will continue to shape market sentiment, with Friday’s consumer price index report and the central bank’s policy outlook expected to influence investor positioning.
