CANADA STOCKS-TSX plunges 1% as Wall Street tech losses spill over, mining stocks retreat

Reuters00:30
CANADA STOCKS-TSX plunges 1% as Wall Street tech losses spill over, mining stocks retreat

Updates throughout, adds details and analyst comment

TSX falls 1.1% to one-week low

Tech leads declines after mixed Big Tech earnings in the U.S.

Rogers Communications rises 2.7% following quarterly revenue beat

By Utkarsh Hathi

Jan 29 (Reuters) - Canada's main stock index fell to a one-week low on Thursday, as heavy losses in Wall Street technology shares spilled over into Toronto markets and a sharp pull-back in precious-metal prices dragged down mining stocks.

The S&P/TSX Composite Index .GSPTSE was down 1.1% at 32,812.69 points as of 10:36 a.m. ET.

TSX's technology index .GSPTTHC sank 5.7%, poised for its biggest single-day drop since April last year, while Wall Street's tech-heavy Nasdaq .IXIC was down more than 2%.

The losses came as investors digested earnings from U.S. tech giants that pointed to another surge in spending on artificial intelligence.

Microsoft's shares MSFT.O plunged 11.5%, on track for their biggest single-day drop since March 2020, after its cloud revenue growth failed to impress investors and stoked fears that hefty AI outlays are not translating into revenue fast enough.

Other mega-cap tech stocks also fell, with Nvidia NVDA.O, Alphabet GOOGL.O and Amazon AMZN.O down more than 2%.

On the TSX, data-center solutions firm Celestica CLS.TO dropped 14.6%, among the day's worst performers, despite upbeat fourth-quarter results and annual forecasts.

The materials index .GSPTTMT, which includes metal miners, gave up early gains and fell 3.5% after gold XAU= and silver XAG= pulled back sharply from record highs. Vizsla Silver VZLA.N plunged 16%.

"I think now we're in bubble territory. The last week or so, the move in the prices of these metals has gone parabolic," said Michael Dehal, senior portfolio manager, Dehal Investment Partners at Raymond James.

Energy stocks .SPTTEN were a bright spot, rising 1.2%, as oil prices advanced amid fears of a potential U.S. strike on major crude producer Iran.

In other notable moves, Rogers Communications RCIb.TO rose 2.7% after the wireless service provider reported quarterly revenue above estimates, helping TSX's communications index .GSPTTTS gain 0.6%.

(Reporting by Utkarsh Tushar Hathi; Editing by Jonathan Ananda)

((utkarshtushar.hathi@thomsonreuters.com))

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