TSX posts steepest decline in five months as US tech rout hits Canadian shares

By Anand Gopal R and Fergal Smith

TORONTO, - Canada's main stock index fell by the most in five months on Thursday as a selloff in US technology shares spilled over to the Canadian market.

The S&P/TSX Composite Index ended down 736.13 points, or 2%, at 35,605.27, giving back much of the previous day's sharp gains. The daily decline was the steepest for the index since June 5.

* US stocks posted steep declines as chipmakers sank on fears of tougher AI regulation after the Democrats' midterm sweep.

* "We're seeing a bit of nervousness on the technology side," said Sadiq Adatia, chief investment officer, BMO Global Asset Management, adding that the selloff reflected sector rotation rather than a broader retreat from equities.

* The government of Canadian Prime Minister Mark Carney was set to present its budget after the market close.

* The TSX's technology sector fell 3.8%, with shares of electronic equipment company Celestica down 12.7%.

* Gildan Activewear's shares tumbled 18.9% after the apparel manufacturer's quarterly results missed estimates.

* Consumer discretionary was down 2.9% and heavily weighted financials ended 3.2% lower.

* Sun Life Financial beat quarterly earnings estimates. Still, its shares fell 10.2%.

* Industrials declined 1.9%, with shares of Bombardier down 8.4% even as the jet maker raised its 2026 free cash flow forecast, buoyed by sustained demand for private flying.

* Canadian Natural Resources beat analysts' estimates for third-quarter profit, helped by higher crude prices and stronger production.

* Its shares fell 1% and energy was down 2.5%.

* US crude oil futures settled 2.7% higher at $90.52 a barrel, clawing back some of the previous day's sharp declines, as new attacks on tankers in the Strait of Hormuz fed worries about oil supplies.

This article was generated from an automated news agency feed without modifications to text.