Financial stocks pull S&P/TSX composite lower, U.S. markets weighed down by big tech

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a $20 bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, Wednesday, Sept. 4, 2024. Photo by Justin Tang /THE CANADIAN PRESSArticle contentTORONTO — Canada’s main stock index finished in negative territory, while U.S. markets lost ground amid AI-related concerns among some investors.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentSadiq Adatia, chief investment officer at BMO Global Asset Management, said there were three main factors investors were concerned about in the market.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article content“One is still the AI story and concerns about … the spending, the valuations, and the potential benefits coming out of that,” he said.Article contentArticle contentSecondly, he noted there is some uncertainty around the U.S. Federal Reserve and its succession plan for its current chair, Jerome Powell, whose term ends in May.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThirdly, he said there is likely some profit-taking and selling going on for tax reasons heading into the end of the year.Article contentGoing forward, he said the last five days of the year tend to be a “more bullish rally” in the stock market.Article contentOn the S&P/TSX composite on Wednesday, losses in the financial sector outweighed gains in energy and basic materials. Adatia said there might have been some profit-taking impacting financials.Article content“There’s nothing fundamentally that we look and see under the hood that’s causing this sort of decline in the financials,” he said.Article contentAdditionally, Adatia noted that the basic materials sector benefited from higher gold prices. The February gold contract was up US$41.60 at US$4,373.90 an ounce.Article content“The materials sector has all done really well this year. We continue to see that doing well next year. The volatility you’re seeing in markets is good for those segments of the market,” he said.Article content“You’re seeing them being a good hedge against that.”Article contentArticle contentThe TSX was down 13.91 points at 31,250.02.Article contentIn New York, the Dow Jones industrial average was down 228.29 points at 47,885.97. The S&P 500 index was down 78.83 points at 6,721.43, while the Nasdaq composite was down 418.14 points at 22,693.32.Article contentMore drops for AI stocks dragged the U.S. market lower Wednesday, and Wall Street sank to its fourth straight loss.Article contentSlightly more stocks rose within the S&P 500 than fell, but they got drowned out by the declines in companies in the artificial-intelligence industry.Article contentQuestions continue to dog the former superstars about whether their yearslong dominance of Wall Street meant their prices shot too high, as well as whether all the investment in AI will produce enough profit and productivity to prove worth the cost. Worries are also rising about the debt that some companies are taking on to pay for it all.Article content“There are a lot of bears in the space, looking at all this capex spending. What is the gain coming out of it?” Adatia said.Article contentHe added that some of the key hyperscalers are able to showcase gains in productivity.Article contentBroadcom dropped 4.5 per cent, Oracle fell 5.4 per cent and CoreWeave sank 7.1 per cent. Nvidia, the chip company that’s become Wall Street’s most influential stock because of its tremendous size, fell 3.8 per cent and was the day’s heaviest weight on the S&P 500.Article contentThe Canadian dollar traded for 72.56 cents US compared with 72.74 cents US on Tuesday.Article contentThe February crude oil contract was up 68 cents US at US$55.81 per barrel.Article contentThis report by The Canadian Press was first published Dec. 17, 2025.Article content— With files from The Associated Press.Article contentCompanies in this story: (TSX:GSPTSE, TSX:CADUSD)Article contentTrending Canada's population declines for the first time since the pandemic News 'Why let one person in the States change your life?' For Canadian snowbirds, the stay or go dilemma gets complicated Real Estate Is a $2.75 million portfolio enough for Halifax empty nesters to retire early?

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Personal Finance World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas Expect 'dramatically higher' oil prices in 2026, says Eric Nuttall Oil & Gas