FX.co ★ TSX Gives Back Record High

The S&P/TSX Composite Index dropped approximately 0.2% on Monday, falling below the 28,280 mark as investors engaged in profit-taking amidst a slew of impending risks. Initially, Powell's statements from the Jackson Hole meeting had raised the likelihood of interest rate cuts, attracting funds into the equities market. However, three significant threats now loom, potentially reversing this trend. First, a busy schedule of U.S. earnings reports, highlighted by Nvidia, may alter the current technology narrative. Second, Friday's U.S. core PCE report, the Federal Reserve's preferred measure of inflation, may affect expectations for rate cuts. Lastly, domestic issues are obscuring Canada's growth prospects. Specifically, Air Canada shares fell over 1% due to a pay dispute that could lead to further crew disruptions, causing investors to reassess future cash flows. Additionally, anticipated Q2 GDP data and ongoing uncertainties regarding tariffs have adversely affected major players in the financial, energy, and technology sectors, which are experiencing significant downward pressure.