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Canada’s main stock index fell on Wednesday as a drop in commodity prices weighed on resource shares, with investors continuing to worry that the Federal Reserve would take its time before cutting interest rates. U.S. stocks were also lower as market participants awaited Nvidia earnings, which beat analysts’ estimates when they were released in the post market.

The S&P/TSX composite index ended down 121.40 points, or 0.5%, at 22,346.76, after notching an all-time closing high on Tuesday.

“Bond markets have been pricing in a delayed start for rate cuts but equity markets have continued to make new highs so we are seeing some pullback, mostly concentrated in equities today, as a result of those worries,” said Angelo Kourkafas, senior investment strategist at Edward Jones.

The materials group in Toronto tumbled 3.1% as gold and copper prices gave back some recent gains.

Hudbay Minerals Inc shares lost 8.4% on plans to raise US$300.2 million in an equity offering to help fund near-term growth initiatives at its Copper Mountain unit.

Energy also lost ground, falling 1.2%, as the price of oil settled 1.4% lower at US$77.57 a barrel.

Technology was a bright spot, rising nearly 1%. It was helped by a gain of 3.3% for the shares of e-commerce company Shopify Inc.

U.S. stocks fell as investors digested minutes of the Federal Reserve’s most recent meeting. They showed U.S. central bank officials still had faith price pressures would ease, but slowly, due to disappointment over inflation readings.

The Fed’s April 30–May 1 meeting followed three straight months of data that showed sticky inflation, but before more recent reports that showed price pressures could be cooling again.

Nvidia overshot Wall Street estimates as its profit skyrocketed, bolstered by the chip-making dominance that has made the company an icon of the artificial intelligence boom. Its net income rose more than sevenfold compared to a year earlier, jumping to $14.88 billion in the first quarter from $2.04 billion a year earlier. Revenue more than tripled, rising to $26.04 billion from $7.19 billion in the previous year. Shares were up about 3% in after-hours trading.

The Dow Jones Industrial Average fell 201.95 points, or 0.51%, to 39,671.04, the S&P 500 lost 14.40 points, or 0.27%, to 5,307.01 and the Nasdaq Composite lost 31.08 points, or 0.18%, to 16,801.54.

Stocks’ rally to record highs this month has been fueled in part by AI optimism, a solid earnings season and reignited hopes for rate cuts by the Fed this year.

Markets are pricing in a 59% chance of the Fed cutting rates by at least 25 basis points at its September meeting, down from 65.7% in the prior session, according to CME’s FedWatch Tool.

Chipmaker Analog Devices jumped 10.86% after forecasting third-quarter revenue above expectations.

Energy was the worst performing sector, down 1.83% as oil prices fell for a third straight session.

Retailer Target tumbled 8.03% after its quarterly earnings and current-quarter forecast missed estimates.

TJ Maxx parent TJX gained 3.5% after raising its annual profit forecast.

Declining issues outnumbered advancers for a 2.75-to-1 ratio on the NYSE and a 1.5-to-1 ratio on the Nasdaq. The S&P index recorded 47 new 52-week highs and six new lows, while the Nasdaq recorded 120 new highs and 109 new lows. Volume on U.S. exchanges was 12.86 billion shares, compared with the 12.01 billion average for the full session over the last 20 trading days.

Reuters, Globe staff

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