By Adriano Marchese
Toronto stocks were firmly lower in middat trading Monday as China's low-cost AI startup DeepSeek sent jitters across the markets that led a broad-based selloff. Canada's tech sector was the main decliner of the session, followed by materials and utilities stocks.
Canada's S&P/TSX Composite Index fell 0.9% to 25230.11, and the blue-chip S&P/TSX 60 declined by 0.6% to 1520.52.
Celestica shares fell in step with other major tech companies due to the emergence of DeepSeek. Celestica is deeply invested in AI for various applications, including energy delivery, as well offering products that are used in major energy-consumer data centers. The stock is down 25% at 131.54 Canadian dollars (91.69).
Other market movers:
Shares of Canadian uranium producers also fell sharply on the news casting fresh doubt on whether the AI boom will demand the massive energy consumption that many had anticipated, much of which was planned to be fueled by nuclear energy.
Cameco shares were down over 11% at C$71.13, while NexGen Energy's stock fell 12% to C$9.13 a share. Denison Mines was down $9.2% at C$2.63, and Energy Fuels' stock declined 9.3% to C$7.44 a share.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
January 27, 2025 12:13 ET (17:13 GMT)
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