TSX Ends Sharply Lower After Powell Hints At Aggressive Rate Hikes

(RTTNews) - The Canadian market ended sharply lower on Friday as stocks fell on widespread selling after Fed Chair Jerome Powell said in his speech at the Jackson Hole Economic Symposium that the central bank would keep aggressively hiking rates to fight inflation.

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

The benchmark S&P/TSX Composite Index ended with a loss of 299.05 points or 1.48% at 19,873.29, recording its worst session in about six weeks. The index shed about 1.2% in the week.

Healthcare, technology, consumer discretionary and materials shares plunged sharply. The Healthcare Capped Index tumbled 5.05% and the Technology index dropped 4.39%, while the Consumer Discretionary and Materials indices both ended nearly 2.5% down.

Industrials, consumer staples and real estate shares also posted sharp losses.

Open Text Corporation (OTEX.TO) tanked nearly 14%. BRP Inc (DOO.TO) ended nearly 6% down. goeasy (GSY.TO), Canadian Tire Corporation (CTC.TO), Franco-Nevada Corporation (FNV.TO), Kinaxis Inc (KXS.TO), Colliers International Group (CIGI.TO), COnstellation Software (CSU.TO), WSP Global (WSP.TO) and Cargojet (CJT.TO) lost 2 to 4%.

Neo Performance Materials Inc. (NEO.TO) shares soared nearly 12%. 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.