The TSX joined stock markets around the world in a new round of selling off Monday, as surging cases of the coronavirus reignited concerns that the economic impact of the pandemic is still far from over.
The S&P/TSX Composite Index was down by almost 400 points or more than 2.5 per cent nearing midday, as health-care companies, energy companies, mining companies, banks and even tech names were all lower.
Losses began in Asia as soon as trading opened for the week, and they accelerated in Europe on worries about the possibility of tougher restrictions there to stem rising coronavirus counts.
In New York, the broad S&P 500 was down by 84 points or 2.5 per cent, while the Dow Jones fared even worse, down almost 1,000 points or 3.5 per cent.
Bank stocks had sharp losses Monday morning after a report alleged that several of them continue to profit from illicit dealings with criminal networks despite being previously fined for similar actions.
Tech sell off
Shares in technology companies have been on fire for the past six months, but even tech companies have been selling off of late on fears that they have risen too far, too fast.
"Anxiety has returned to the market," said Sarah Potter, president of trading website youcantrade.com, in an interview with CBC News on Monday. "You're starting to see that fallout."
In the early days of the pandemic, technology stocks boomed largely because their earnings were legitimately higher due to demand for their services. Online seller Amazon, streaming service Netflix and video conferencing company Zoom all boomed by catering to the needs of millions of people stuck at home because of COVID lockdowns.
Canadian technology Shopify rode that same wave to become Canada's most valuable company in this pandemic, surpassing the Royal Bank of Canada. And Montreal-based payments firm Nuvei Corp. completed the biggest technology IPO in the history of the TSX last week, raising $700 million for investors who have since doubled the value of the company.
"But now you start hearing about all these other companies who used to drive things whose earnings aren't great," she said. "The reality of these companies is bringing the market lower [and] fear is back in the market."
https://news.google.com/__i/rss/rd/articles/CBMiPWh0dHBzOi8vd3d3LmNiYy5jYS9uZXdzL2J1c2luZXNzL3RzeC1tYXJrZXRzLWRvbGxhci0xLjU3MzI0NzTSASBodHRwczovL3d3dy5jYmMuY2EvYW1wLzEuNTczMjQ3NA?oc=5
2020-09-21 18:51:00Z
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