S&P/TSX composite ends trading day down more than 150 points, U.S. markets also lower

The S&P/TSX composite index was down 165.98 points at 19,560.16.

North American markets ended the trading day in the red, with Canada’s main stock index down more than 150 points and U.S. stock markets also lower.

The S&P/TSX composite index was down 165.98 points at 19,560.16, driven by losses in the energy sector as the price of oil fell.

Oil retreated as fears of a pronounced global slowdown and its potential impacts on global energy demand worsened.

In New York, the Dow Jones industrial average was down 173.27 points at 30,961.82. The S&P 500 index was down 44.66 points at 3,901.35, while the Nasdaq composite was down 167.32 points at 11,552.36.

U.S. markets fell even as retail sales data came in stronger than expected and jobless claims declined for a fifth week.

“While the reports provided an upbeat assessment for the U.S. economy, they also indicate that policymakers have more work to do in order to cool the economy and curb inflation,” said Candice Bangsund, portfolio manager at Fiera Capital.

Bond markets also came under pressure as investors ramped up their wagers for a more aggressive U.S. Federal Reserve next week, which sent bond yields higher and prices lower on the day.

It is widely expected that the central bank will hike its key interest rate three-quarters of a percentage point at its upcoming meeting, but odds of a full percentage point hike have been increasing after the latest reading on inflation disappointed traders Tuesday.