Canadian Stocks Extend Nosedive After Early Move To The Upside

(RTTNews) - After failing to sustain an early move to the upside, Canadian stocks once again came under pressure over the course of the trading session on Tuesday.

The benchmark S&P/TSX Composite Index pulled back well off its early highs and tumbled firmly into negative territory.

The S&P/TSX Composite Index slumped 352.56 points or 1.5 percent to 22,506.90, hitting its lowest closing level since last August.

Canadian stocks initially benefitted from optimism about negotiations on U.S. President Donald Trump's new tariffs, but buying interest waned as the day progressed amid concerns about rising tensions between the U.S. and China.

China has vowed to "fight to the end" after Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

A White House official told CNBC the effective tariff rate on China will spike to 104 percent at midnight, when Trump's other "reciprocal tariffs" are also set to take effect.

Energy stocks helped lead the way lower as the price of crude oil pulled back sharply after an early rebound, with the S&P/TSX Capped Energy Index plunging by 4.8 percent.

Healthcare, telecom, real estate and technology stocks also came under pressure over the course of the session as another day of broad based weakness emerged on Bay Street.