TORONTO, Nov 17 (Reuters) - Canada's main stock index fell to a 10-day low on Monday as worries about the sustainability of the spending boom around artificial intelligence offset an easing of domestic inflation pressures.
The S&P/TSX composite index (.GSPTSE), ended down 250.25 points, or 0.8%, at 30,076.21, its lowest closing level since November 7.
Wall Street also posted steep declines.
"It's obviously tech-related, AI spend-related. That's what's driving the bus to the downside," said Allan Small, senior investment adviser of the Allan Small Financial Group with iA Private Wealth.
"The things that we were really bullish on is now being called into question."
Nvidia, the world's largest company by market value, which is at the heart of Wall Street's artificial intelligence trade, is due to report after the bell on Wednesday.
The technology sector fell 2.1%, with shares of Lightspeed Commerce Inc (LSPD.TO), down 4.9%.
The materials group, which includes metal-mining shares, ended 1.4% lower as the price of gold fell on reduced expectations of a U.S. interest rate cut next month.
Canada's annual inflation rate eased to 2.2% in October from 2.4% in September as gasoline prices dropped. Analysts had forecast inflation at 2.1%.
"The modest upside surprise to headline inflation in October was largely due to one-off factors," said Stephen Brown, deputy chief North America economist at Capital Economics. "That lends some support to our view that the Bank of Canada will eventually feel comfortable in cutting interest rates further."
Three of 10 major sectors ended higher, including consumer staples, which added 0.8%.
Reporting by Fergal Smith in Toronto and Avinash P and Pranav Kashyap in Bengaluru; Editing by Shreya Biswas and Deepa Babington
