Jun 20, 2013
By Michael Kramer
North American stocks fell more than 2 percent in a broad selloff today – as investors continued to worry over the U-S Federal Reserve’s plan to begin winding down its stimulus program later this year.
The Fed’s program has fueled market gains this year, sending indexes repeatedly to all-time highs.
Among the sectors getting hit hard were homebuilders, down 5 percent on concerns that higher borrowing rates will reduce housing activity. That came even though sales of existing U.S. homes rose in May to a three-and-a-half-year high.
The S&P/TSX composite index tumbled 300 points or two and a half per cent to 11,969, leaving the T-S-X down 465 points or 3.75 per cent so far this year.
The Canadian dollar tumbled 94-100ths to 96.4 cents U-S.
New York’s Dow industrials dropped 354 points to 14,758 after dropping 206 points Wednesday.
the Nasdaq fell 79 points to 3,365.
Oil fell $2.84 to US$95.40 a barrel.
The slide was partly triggered by a disappointing read on Chinese manufacturing, which sent prices for oil and copper tumbling, and depressed resource stocks.