Canadian Market Headed For Weak Close As Stocks Tumble After Powell's Remarks

(RTTNews) - The Canadian market is down firmly in negative territory Friday afternoon, and looks set to end the session on a very weak note.

Fed Chair Jerome Powell's remarks at the Jackson Hole Symposium that he expects to keep interest rates high to fight inflation sent stock prices tumbling in the U.S. and European markets, and the trend in Canada is not any different.

Healthcare, technology, materials and consumer discretionary stocks are among the major losers. Financials and industrials stocks are down as well, while select stocks from energy and utilities sections have edged higher.

The benchmark S&P/TSX Composite Index is down 256.23 points or 1.28% at 19,916.11.

Powell said that the central bank's efforts to combat inflation will cause "some pain."

Powell reiterated the Fed's resolve to bring inflation back to its 2% target, declaring that the "economy does not work for anyone" without price stability. He added that the central bank would use its tools "forcefully" to bring demand and supply into better balance.

Open Text Corporation (OTEX.TO) is plunging 12.5%. Brp Inc (DOO.TO), goeasy (GSY.TO), Franco-Nevada Corporation (FNV.TO), Canadian Tire Corporation (CTC.TO) and Kinaxis Inc (KXS.TO) are down 3 to 5.1%.

West Fraser Timber (WFG.TO), Cargojet (CJT.TO), Constellation Software (CSU.TO), Colliers International (CIGI.TO), Fairfax Financial Holdings (FFH.TO) and WSP Global (WSP.TO) are declining 2 to 2.5%.

Canadian Western Bank (CWB.TO) shares are down 2%. The bank reported third-quarter net income of $81 million, up 9% sequentially and down 6% from the same period last year.

Neo Performance Materials Inc. (NEO.TO) shares are soaring 12.5%. Hastings Technology Metals Ltd has entered into a binding share purchase agreement with an affiliate of Oaktree Capital Management, L.P. to acquire 8,974,127 common shares in Neo Performance Materials Inc., representing a 22.1% shareholding in Neo. The deal has been agreed at a price of C$15.00 per Neo share, representing a total consideration of C$135 million.

Vermilion Energy (VET.TO), Toronto-Dominion Bank (TD.TO), Tourmaline Oil Corporation (TOU.TO) and Nutrien (NTR.TO) are up with sharp to moderate gains.