At Close: TSX Ends First Half Down 11%: Nasdaq Has Worst First-Half Ever

By Ketki Saxena 

Investing.com -- The S&P/TSX closed the day at 18,861.36 points, 1.14% lower in the day’s trading, down 2.08% this shortened trading week, and down 11% for the first half of the year at the second quarter’s end. 

Despite the TSX’s Q2 losses  - its worst quarterly performance since the pandemic-led sell-off in March 2020 - the Toronto index outperformed its U.S. benchmarks, buoyed by strength in commodities during the period. 

Worries of a slowdown continue to ramp up and dominate equities, as central bankers double down on raising rates to tackle out-of-control inflation- even if means risking a recession. Meanwhile, the indicators of a cooling U.S. economy keep piling up, including today’s less than robust consumer spending data. 

In Canada, domestic GDP data also reflected a cooldown, showing a  0.2% contraction for May. However, annualized quarterly growth is expected at around 4%, stronger than in the first quarter, and outpacing comparable economies including the U.S. The data reinforces the likelihood of a 75 basis point hike from the Bank of Canada in two weeks. 

All TSX closed in the red as bearish sentiment dominated. The Canadian index also continued to be weighed by weakening crude prices as worries of slowing economic output globally overshadow concerns of tight supply. Losses were capped the likelihood of further tightening supply, following a suspension of Libyan shipments from two key ports, a decline in Ecuador’s output amidst ongoing protests, and a strike from Norweigian oil workers from the 5th of July onwards. The strike is expected to shut down about 4% of Norway's oil production. 

The commodity-heavy TSX was also pressured by broad-based losses in metals, including another slide in copper and weakness in bullion, which has dropped over 8% for the second quarter. 

However, was the worst-performing sector on the TSX today, as Canopy Growth (TSX:WEED) tanked following the announcement of a convertible notes exchange. Canopy lost 18.26% or 0.82 points to trade at 3.67 in late trade. 

Today’s biggest loseres also included NovaGold Resources Inc, which declined 10.33% or 0.71 points to end at 6.16 and K92 Mining Inc (TSX:TSX:KNT), which shed 7.61% or 0.64 points to 7.77.

The biggest gainers of the session on the S&P/TSX Composite were Canfor (TSX:CFP) Corporation, which rose 3.42% or 0.74 points to trade at 22.38 at the close. Brookfield Infrastructure Partners LP added 2.78% or 1.33 points to end at 49.14 and TFI International Inc (TSX:TFII) was up 2.72% or 2.73 points to 103.25 in late trade.

In New York, the Dow Jones Industrial Average fell 0.82%, while the S&P 500 index fell 0.88%, and the NASDAQ Composite index declined 1.33%.

The Nasdaq is down 8.7% month to date; the S&P 500 is down 8.4%, and the Dow Jones is lower by 6.6%. 

Year to date, the S&P 500, is down 20.6%, its worst first half since 1970. The Dow is down 15.3% for its biggest first-half percentage plunge since 1962, and the Nasdaq is down 29.4% for its worst half - ever. 

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