Home / Business and Economy / TSX Dips as Economy Contracts, AI Fears Grow
TSX Dips as Economy Contracts, AI Fears Grow
28 Feb
Summary
- Canada's TSX composite index fell 0.5% on Friday.
- Economy contracted at a 0.6% annualized pace in Q4.
- Tech and financials saw significant declines.
Canada's S&P/TSX composite index experienced a decline of 0.5% on Friday, giving back some of its monthly gains. This downturn followed three consecutive days of record closing highs. Wall Street also saw losses amid concerns over credit and artificial intelligence disruption.
The technology sector fell by 2.5%, with e-commerce giant Shopify Inc. shares down 4.3%. Financials dropped 1.9%, while consumer discretionary also saw a 1% decrease. Conversely, energy shares added 1.2% as oil prices rose to $67.02 a barrel, influenced by potential supply disruptions.
Domestically, Canada's gross domestic product contracted at an annualized rate of 0.6% in the fourth quarter. This marked the slowest year of growth for the country since 2020, with manufacturers reducing inventories. Despite the quarterly contraction, the TSX finished February with a substantial 7.6% gain, its largest monthly increase since November 2020.
