TSX Ends Sharply Lower As Hot U.S. Inflation Data Triggers Sell-off

(RTTNews) - The Canadian market suffered one of its worst setbacks in recent months as stocks tumbled on sustained selling pressure on Tuesday after data showing a bigger than expected increase in U.S. consumer price inflation reduced the possibility of a rate cut by the Federal Reserve anytime soon.

Mirroring widespread selling, all the sectoral indices ended in the red. Technology, materials, consumer discretionary, utilities, financials and energy stocks were among the major losers.

The benchmark S&P/TSX Composite Index, which plunged to 20,466.50, ended with a loss of 482.33 points or 2.29% at 20,584.97.

The Information Technology Capped Index dropped 4.59%. The Materials Index tumbled 3.35%, while the Consumer Discretionary Index and the Utilities Index both ended down 2.37% and 2.3%, respectively.

The Healthcare, Communication Services, Energy, Financials and Real Estate indexes shed 1.5 to 2.1%, respectively.

SSR Mining Inc. (SSRM.TO) tanked 53.5%, weighed down by the company's announcement that it is suspending operations at its Çöpler mine.

Shopify Inc (SHOP.TO) shares plunged 12.5% after the company forecast its Q1 revenue growth rate below estimates.

BRP Inc (DOO.TO), Precision Drilling Corporation (PD.TO), Restaurant Brands International (QSR.TO), Cargojet (CJT.TO) and goeasy (GSY.TO) lost 3.2 to 4.5%.

Bank of Montreal (BMO.TO), Royal Bank of Canada (RY.TO), WSP Global Inc (WSP.TO), George Weston (WN.TO) and Constellation Software (CSU.TO) ended down 1.6 to 2.5%.

Among the stocks that bucked the weak trend, Softchoice Corporation (SFTC.TO) climbed 5.6% and Waste Connections (WCN.TO) surged 2.3%.

The Labor Department said its consumer price index rose by 0.3% in January after inching up by 0.2% in December. Economists had expected consumer prices to edge up by 0.2%.

While the report also showed the annual rate of consumer price growth slowed to 3.1% in January from 3.4% in December, economists had expected the pace of growth to slow to 2.9%.

Excluding food and energy prices, core consumer prices climbed by 0.4% in January after rising by 0.3% in December. Core prices were expected to increase by 0.3%.

With Federal Reserve officials repeatedly saying they need more "confidence" inflation is slowing before lowering interest rates, the data has further reduced optimism about a near-term rate cut.