16.12.202521:06:06UTC+00TSX Retreats for 3rd Straight Session

On Tuesday, the S&P/TSX Composite Index dropped by 0.7%, closing at 31,264, marking its third consecutive session of declines. This downturn was primarily fueled by significant losses in the energy sector, as investors digested increasing signs of a slowing US economy. Major energy companies such as Canadian Natural Resources, Suncor, Imperial Oil, and Cenovus were at the forefront of the decline, with their stocks plunging between 3.4% and 5.3%, driven by ongoing concerns about oil oversupply. In other sectors, financials, mining, and technology shares showed little movement or a slight decrease, indicative of a cautious market sentiment following delayed US data that reinforced expectations of the possibility of at least one more interest rate cut in the coming year. The US jobs report indicated the addition of 64,000 jobs in November, slightly exceeding forecasts. However, the unemployment rate unexpectedly increased to 4.6%, the highest since 2021, highlighting a gradual deceleration in the labor market. Additionally, retail sales remained flat, further supporting the notion that consumer demand is waning.