Canadian, U.S. markets slide amid risk-off day as precious metal prices decline

Market Overview - Investors are currently withdrawing funds from the market, leading to significant declines in major indices, with the S&P/TSX composite index down 576.95 points to 31,994.60, the Dow Jones down 592.58 points to 48,908.72, the S&P 500 down 84.32 points to 6,798.40, and the Nasdaq down 363.99 points to 22,540.59 [1] Gold and Silver Market - Gold prices fell by 1.2%, fluctuating after nearly doubling in price over the past year, reaching close to US$5,600 last week before dropping below US$4,500 on Monday. The April gold contract was down US$61.30 at US$4,889.50 per ounce [2] - Both gold and silver had seen significant increases as investors sought safer assets amid political turmoil and concerns over high U.S. stock market valuations and global government debt. However, a pullback was anticipated due to unsustainable growth rates [3] Corporate Earnings - Canadian investors reviewed a range of corporate earnings, which have generally been positive, but high expectations have led to a lack of rewards for companies that only slightly exceed earnings estimates. Companies like BCE Inc. and Thomson Reuters saw their shares drop by 2.56% and 5.41%, respectively, despite reporting fourth-quarter earnings [4] - Alphabet's stock fell 0.5% after initially dropping 8%, despite reporting stronger-than-expected profits. Investors were concerned about the company's significant spending on artificial intelligence technology, which could double to approximately US$180 billion this year, surpassing analysts' expectations of less than US$119 billion [5][6] Labor Market Insights - The U.S. Labor Department reported a decrease in job vacancies to 6.5 million in December from 6.9 million in November, marking the lowest level since September 2020. This indicates a potential softening in the U.S. labor market, though it is not yet seen as overly concerning [7]