The Toronto Stock Exchange’s S&P/TSX composite index ended the week down 51.98 points, or 0.3%, after posting gains over the four previous days. This was enough to salvage a weekly gain of 0.4%.
Canada’s main stock index was impacted by a 1.2% decline from technology stocks. While tech stocks grew over the previous four days, they fell after two Federal Reserve officials signaled that the central bank is not yet nearing the end of its interest rate hiking agenda.
Higher interest rates often negatively impact the value of future cash flows in investors’ minds, thereby resulting in increased selloffs. Investors largely cashed in on tech stocks on Friday, leaving it to other sectors to continue the TSX’s boom.
The tech sector was not the only one to struggle at the end of the week, with the real estate and utilities sectors falling 0.9% and 0.8% respectively. These sectors are also sensitive to higher interest rates.