The price of crude oil briefly pushed past the US$55 mark Wednesday, sending U.S. markets sharply lower, while financial, technology and mining shares helped lead Toronto markets to a triple-digit loss.

At close, the S&P/TSX was down 108.20 points or 1.09% to 9795.14, while the TSX Venture Exchange lost 8.43 points or 0.42% to 2009.96. The Dow Jones industrial average lost 107 points or 0.98% at 10805.62, diminishing hopes that the index would soon break the 11,000 mark. The broader gauges were also lower. The Standard & Poor’s 500 index declined 12.41 or 1.02% to 1207.02. The Nasdaq composite index fell 12.26 or 0.59% to 2061.29.

The Canadian dollar rose a fourth day against the U.S. dollar, the biggest fluctuation of any currency on Wednesday, as crude oil prices approached record highs. Combined with yesterday’s gain, the Canadian currency’s two-day increase is the most in more than 16 years. The C$ passed the US83¢ mark for the first time since Jan. 14, but had settled at US82.90¢, up 0.55 of a cent, late in the day.

Oil futures climbed 18¢ to US$54.77 after pushing as high as $55.65 per barrel on the New York Mercantile Exchange, just below last autumn’s record high. This came after the government’s weekly supply data showed a better-than-expected rise in crude inventories, but declines in supplies of gasoline and distillate fuel, which includes heating oil. Some traders were betting oil prices would climb higher still, amid supply concerns and as cold weather caused shudders in the Northeast.

On the TSX, energy shares fell 1.8% despite the jump in crude futures. Mining shares were down 1.94% led by Noranda Inc., Canada’s biggest mining company, whose stock slid 36¢ or 1.55% to $22.94. The company, which produces copper, aluminum and zinc, will swap 1.77 shares for each Falconbridge Ltd. share at $41.24 a share, 5.6% more than yesterday’s close. Falconbridge gained $1.20 to $40.35.

The interest-rate sensitive financial subgroup also fell, losing 0.78%, as the yield on the U.S. 10-year Treasury note climbed to the highest since early August, giving investors a reason to favor bonds rather than stocks. Among the larger declines was Bank of Nova Scotia, down 17¢ or 0.41% to $40.95, and Royal Bank of Canada, down 70¢ or 0.94% to $73.90.

Technology shares slid 1.62% with Research In Motion continuing under pressure. RIM lost 61¢ or 0.95% to $63.54.

On Wall Street, stocks were pressured by higher yields on long-dated Treasuries and oil prices.

A gradual acceleration of inflation measures and a rally in commodities have combined to make investors nervous about stocks, as many on Wall Street predict a slowdown in corporate profits for 2005. The feeble U.S. dollar and bearish bond market, combined with a rise in gold prices, underscored those concerns Wednesday.

Bond trading was also volatile, as the yield on the 10-year Treasury note rose to 4.48% from 4.39% late Tuesday. Bond traders have moved to bearish positions this week as the U.S. Treasury prepared to sell $15 billion in five-year notes Wednesday, followed by a $9 billion sale of 10-year notes Thursday.

Markets shrugged off an upbeat report on U.S. economic activity released today by the Federal Reserve.

The report noted employment climate improved, stores rang up sales and factories boosted production in February.

“The economy has continued to expand at a moderate pace,” according to the survey, based on information collected on or before Feb. 28.