Feb 21 (Reuters) - Canada's main stock index was dragged down on Wednesday by a drop in mining and rate-sensitive technology stocks, while investors remained cautious ahead of the minutes release from the U.S. Federal Reserve's latest policy meeting.
At 10:14 a.m. ET (1514 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab was down 54.1 points, or 0.25%, at 21,163.43.
Technology stocks (.SPTTTK), opens new tab led losses on the index with a 1.8% decline, dragged by crypto miners Hut 8 and Bitfarms (BITF.TO), opens new tab, down 3.9% and 7.0%, respectively, after Bitcoin lost 2%.
The materials sector (.GSPTTMT), opens new tab, which includes Canadian miners, extended declines to a third consecutive session after it fell 0.9%. Gold miner Wheaton Precious Metals (WPM.TO), opens new tab lost the most among materials stocks, falling 7.1% after brokerages cut price targets on the stock due to underwhelming 2024 production forecast.
Insurance company iA Financial Corp (IAG.TO), opens new tab plummeted 9.4% to the bottom of the index after it reported its fourth-quarter profit below analysts' estimates. The stock pulled heavyweight financials (.SPTTFS), opens new tab down 0.6%.
In the U.S., minutes from the Federal Reserve’s last policy meeting, due at 2:00 p.m. ET, are on the radar for more details on the timing of the interest rate cuts by the U.S. central bank.
Chip-maker Nvidia’s (NVDA.O), opens new tab high-stakes earnings report, which will set the expectations of an AI-fuelled rally this year, also pressured Wall Street indexes, that opened lower on Wednesday.
"Nvidia earnings will be a big market mover after today, but it looks like investors are a little jittery heading into the number", said Allan Small, senior investment adviser of Allan Small Financial Group with iA Private Wealth.
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"The Fed minutes could be a market mover if we learn that it is delaying interest rate cuts even further down the road. I think right now market is selling off slightly based on some nervousness", he added.
Meanwhile, Canada's main stock index is set to notch a record high in 2025 as the expected start of interest rate cuts by central banks, a Reuters poll found.
Among other stocks, shares of apparel-maker Gildan Activewear, opens new tab(GIL.TO), opens new tab climbed 5.2% after its fourth-quarter results beat analysts' estimates.
Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar
