Canada Stocks-TSX slips as tech shares slide amid AI spending fears
SPY•Company news
In company news, burger chain A&W Food Services' AW.TO second-quarter adjusted EBITDA fell on higher expenses.
Materials, energy and trade backdrop
- Heavyweight materials shares .GSPTTMT were also down, retracing some gains from the previous session as gold prices declined. GOL/
- An escalating Middle East conflict drove oil prices higher, stoking inflation worries ahead of next week's Federal Reserve policy meeting, which will be parsed for clues on the timing of potential interest rate hikes.
- Seven of the index's 10 major sectors traded lower.
- Energy stocks .SPTTEN gained over 2%, tracking surging oil prices, though this offered only limited support to the broader index.
- On the trade front, Prime Minister Mark Carney said Canada will do whatever it takes to defend its workers, farmers and businesses in a trade war with the U.S.
Real estate and technology shares lead declines
- Real estate shares were among the worst hit, led by losses in FirstService Corp FSV.TO, down 9.5% after missing quarterly revenue estimates.
- Altus Group AIF.TO and Colliers International Group CIGI.TO were down over 3% each.
- Technology shares shed 1.7%, led lower by Shopify SHOP.TO and CGI Inc GIBa.TO, down 3.2% and 3.6%, respectively.
- On Wall Street, Alphabet shares GOOGL.O fell 6.9% as attention shifted to its higher spending plans. Tesla TSLA.O dropped 13.4% after posting negative free cash flow for the second quarter for the first time in over two years.
