**Bank of America Governor Makes Announcement Minutes Ago**
**Rosa Saba**
**Thu, July 25, 2024, 5:35 p.m. GMT+1**
**The Canadian Press**
TORONTO — Canada’s main stock index fell on Wednesday, primarily due to declines in industrial and base metal stocks, while U.S. markets also experienced a downturn.
The drop was attributed to a “significant selloff” led by the technology sector, according to Tamsin Wilding, principal and portfolio manager for fixed income at Leith Wheeler Investment Counsel Ltd.
U.S. stock indexes endured their worst day since 2022, with major tech companies dragging down the market. After the bell on Tuesday, Tesla and Alphabet reported their earnings. Although Alphabet’s results exceeded expectations, Tesla’s earnings fell short, leading to sharp declines in their stock prices.
Alphabet’s shares dropped by five percent, while Tesla’s stock plummeted over 12 percent. Other leading tech firms also saw losses, with Microsoft down 3.6 percent, Nvidia declining 6.8 percent, and Apple falling nearly three percent.
The Nasdaq composite experienced the steepest decline among major U.S. indexes, falling 654.94 points, or 3.6 percent, to 17,342.41.
The Dow Jones Industrial Average decreased by 504.22 points, or 1.3 percent, closing at 39,853.87. The S&P 500 Index fell by 128.61 points, or 2.3 percent, settling at 5,427.13.
Despite the market’s sensitivity to macroeconomic factors like interest rates this year, Wilding noted that Wednesday’s decline was mainly due to concerns over tech earnings.
In Canada, the S&P/TSX Composite Index ended the day down 174.18 points at 22,639.57.
The Bank of Canada also made news by announcing its second interest rate cut of the year, reducing the rate to 4.5 percent. Governor Tiff Macklem explained that with inflation nearing the central bank’s target, it was necessary to consider the risks of maintaining high interest rates.
“The decision to lower the policy interest rate today was influenced by the need for economic growth,” Macklem said.
Wilding observed that this announcement indicates a significant shift in the central bank’s approach, highlighting increased awareness of the risks to economic growth.
