Yahoo Finance CANADA STOCKS-TSX falls 1% as US economic data weigh
*
TSX down 1%, hits lowest in a week
*
Tech shares lead declines
*
Mullen Group's Q1 results miss estimates; shares tank
(Updated at 10:01 a.m. ET/ 1401 GMT)
By Purvi Agarwal
April 25 (Reuters) - Canada's main stock index tumbled 1% to its lowest in a week amid a broad sell-off as signs of persistent inflation in the United States pushed back hopes of an interest rate cut in the early half of the year.
At 10:01 a.m. ET (14:01 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 213.1 points, or 0.97%, at 21,660.62.
U.S. economic growth slowed more than expected in the first quarter, data showed on Thursday, but an acceleration in inflation suggested that the Federal Reserve would not cut interest rates before September.
U.S. stocks also opened sharply lower on Thursday, further pressured by growth stocks after dour quarterly results from Meta Platforms
"(GDP numbers) were a lot worse than expected. A lot of the expectations were that earnings would be good because the economy was strong, but it is not," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
"The inflation part of the GDP report really took off, so now the Fed has a problem," he added.
On the TSX, rate-sensitive technology stocks declined 1.8%, dragged down by a 5.1% % and 3.9% decline in crypto miners Hut 8 and Bitfarms, tracking a 1.1% decline in Bitcoin.
If the declines hold, The sector faces its worst day in over a month.
All the other sectors also logged losses with materials shares the only outliers with a 0.2% gain, as they tracked high prices of base and precious metals.
Later in the day, investors will parse through more megacap earnings in the U.S., with Microsodt and Alphabet set to report their quarterly results after the closing bell in the run-up to a key inflation report due Friday.
In Canadian corporate news, Mullen Group sank to the bottom of the index with an 8.9% fall after the logistics provider's first-quarter results missed analysts' estimates. (Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar)
