TSX Ends Notably Lower As Stocks Fall After Powell's Testimony

(RTTNews) - Canadian stocks tumbled on Tuesday after Federal Reserve Chair Jerome Powell warned interest rates will likely remain higher for longer than previously expected to fight inflation.

Citing stubbornly elevated inflation and stronger than expected economic data, Powell said in his testimony before the Senate Banking Committee that "ultimate level of interest rates is likely to be higher than previously anticipated."

Powell also said the Fed would be prepared to reaccelerate the pace of rate hikes if the totality of incoming data were to indicate that faster tightening is warranted.

Additionally, the Fed chief reiterated the central bank will likely need to maintain a restrictive stance of monetary policy for "some time" in order to restore price stability.

The dollar's surge, and falling crude oil and bullion prices weighed on Canadian stocks.

The benchmark S&P/TSX Composite Index ended with a loss of 239.26 points or 1.17% at 20,275.54, after hitting a low of 20,236.45.

Materials and energy stocks were among the major losers. The Materials Capped Index and the Energy Capped Index fell 2.88% and 1.96%, respectively.

Financials and technology stocks were the other prominent losers.

Wheaton Precious Metals (WPM.TO), Teck Resources (TECK.A.TO), Franco-Nevada Corporation (FNV.TO), Cargojet (CJT.TO), Agnico Eagle Mines (AEM.TO), West Fraser Timber (WFG.TO) and Bank of Montreal (BMO.TO) lost 2 to 5%.

BlackBerry Ltd. (BB.TO) plunged nearly 12%. The company said it expects preliminary fourth-quarter total company revenue to be around $151 million, and fiscal 2023 revenue to be around $656 million.

Wajax Corporation (WJX.TO) rallied 4.4%. Gfl Environmental (GFL.TO), Stella-Jones Inc (SJ.TO), Bombardier Inc (BBD.B.TO), Stantec Inc (STN.TO), WSP Global (WSP.TO) and Thomson Reuters (TRI.TO) gained 1 to 3%.