Canadian Stocks Move Back To The Downside Amid Tech Sector Weakness

After ending the final trading day of 2023 slightly higher, Canadian stocks moved back to the downside on the first trading day of the new year on Tuesday.

The benchmark S&P/TSX Composite Index fluctuated after an initial move to the downside but remained in negative territory before closing down 86.30 points or 0.4 percent at 20,872.14.

The weakness on Bay Street came as some traders cashed in on last year’s strength in the markets, which saw the S&P/TSX Composite Index spike by 8.1 percent.

Profit taking contributed to substantial weakness among tech stocks, with the S&P/TSX Capped Information Technology Index plunging by 2.8 percent.

The weakness in the sector also came as shares of Apple moved sharply lower on Wall Street after Barclays downgraded its rating on the tech giant’s stock to Underweight from Equal Weight.

Healthcare and real estate stocks also saw some weakness on the day, while communications stocks showed a strong move to the upside.

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