Stock market: Shares fall on tech slide, oil hits highest level since 2014
TORONTO —
A big drop in the technology sector led Canada’s main stock index to fall to its lowest level since July even as energy rose as crude oil prices hit highs not seen since 2014.
Stock markets are taking a breather from what has been a strong 2021 amid a broader rotation away from growth areas toward cyclical and value names as long-term bond yields rise, says Craig Fehr, investment strategist, Edward Jones.
“If you look below the surface of the declines, what’s playing out is higher interest rates are taking their toll on growth investments, particularly technology stocks, which is where the most acute weakness is within the market,” he said in an interview.
The 10-year U.S. treasury was flattish on the day but the 10-year rate in Canada moved slightly above the U.S. rate for the first time an awhile.
“Long-term interest rates are higher, reflecting obviously ongoing inflation pressures and…
