S&P/TSX composite down 1.6 per cent, U.S. stock markets also fall [Video]

Canada’s main stock index fell 1.6 per cent Wednesday in a broad-based decline, while U.S. stock markets also fell.

The S&P/TSX composite index closed down 367.07 points at 21,897.98.

In New York, the Dow Jones industrial average was down 411.32 points at 38,441.54. The S&P 500 index was down 39.09 points at 5,266.95, while the Nasdaq composite was down 99.30 points at 16,920.58.

Rising yields weighed on markets Wednesday, especially more rate-sensitive sectors, said Pierre-Benoît Gauthier, vice-president of investment strategy at IG Wealth Management.

“These increases come on the back of weak auctions that we had all week for bonds,” he said.

“It’s going to be volatile,” added Gauthier, but “I don’t think it’s necessarily a trend.”

Traders continue to adjust their expectations for interest rate cuts from the U.S. Federal Reserve, he said. Those expectations have been significantly pared back from earlier this year as economic data has been coming in stronger than …