Sell-Off By Energy Stocks Weighs On Bay Street

(RTTNews) - Canadian stocks moved mostly lower over the course of the trading day on Tuesday, adding to the modest losses posted in the previous session.

The benchmark S&P/TSX Composite Index slid 219.51 points or 0.7 percent to 31,263.93, closing lower for the third straight session after reaching a record closing high last Thursday.

Substantial weakness among energy stocks weighed on Bay Street, with the S&P/TSX Capped Energy Index plunging by 3.7 percent.

The sell-off by energy stocks came amid a steep drop by the price of crude oil, which plummeted to its lowest levels since early 2021 amid lingering oversupply concerns.

Technology stocks also saw some weakness on the day, while healthcare stocks skyrocketed, resulting in a 6.7 percent spike by the S&P/TSX Capped Health Care Index.

Concerns about the strength of the U.S. economy may also have generated some negative sentiment following the release of the Labor Department's report on employment in the month of November.

While report showed stronger than expected job growth in November, the increase followed a notable loss of jobs in October.

The report said non-farm payroll employment climbed by 64,000 jobs in November after tumbling by 105,000 jobs in October. Economists had expected employment to rise by 50,000 jobs.

Meanwhile, the Labor Department said the unemployment rate rose to 4.6 percent in November from 4.4 percent in September. The unemployment rate was expected to tick up to 4.5 percent.

With the bigger than expected increase, the unemployment rate reached its highest level since hitting 4.7 percent in September 2021.