TSX Down Nearly 0.5% Despite Coming Off Early Lows

(RTTNews) - The Canadian market continues to languish in negative territory a little past noon on Tuesday, despite recovering from early lows.

Worries about lofty valuations of AI-related stocks, and uncertainty about the Federal Reserve's upcoming interest rate moves weigh on sentiment, prompting investors to trim down positions.

Investors are awaiting earnings update from AI bellwether Nvidia, and some crucial U.S. economic data for directional clues.

The benchmark S&P/TSX Composite Index, which tumbled to 29,829.35 earlier in the session, was down 147.25 points or 0.49% at 29,928.96 about half an hour past noon.

Technology, communications and industrials shares are weak. Healthcare and energy stocks are finding some support.

Telus Corp is down more than 4%. Cogeco Communications is declining by nearly 1%. BCE and Rogers Communications are down marginally.

Technology stocks Docebo Inc is down nearly 3%. Coveo Solutions, Tecsys, Computer Modelling, Shopify, Descartes Systems Group, Firan Technology Group and Lightspeed Commerce are down 1 to 2.5%.

Industrials stocks AtkinsRealis, WSP Global, Stantec, Ats Corp., Cargojet, Boyd Group Services, Tfi International, Canadian National Railway, Rb Global, Canadian National Railway and Thomson Reuters are down 1.2 to 3%.

Energy stocks Whitecap Resources, Peyto Exploration, Ces Energy Solutions, Birchcliff Energy, Vermilion Energy, Tamarack Valley Energy, Kelt Exploration, Freehold Royalties and Athabasca Oil Corporation are gaining 1 to 3.2%.

In the healthcare sector, Sienna Senior Living, Chartwell Retirement Residences and Bausch Health Companies are up 2.7%, 2.5% and 1.3%, respectively.

In economic news, data from Canada Mortgage and Housing Corporation showed housing starts in Canada sank 17% from the previous year to a seasonally adjusted rate of 232,765 units in October, marking the lowest rate of starts in seven months.